Long-term rental: How to retain your tenants?

Oct 10, 2024

A nice, well-furnished apartment.

Long-term rental is an excellent way for owners to ensure regular and stable income.

However, a major challenge lies in retaining tenants. A tenant who stays for a long period helps avoid rental vacancy periods, refurbishment costs, and the expenses associated with finding new occupants.

So, how can you retain your tenants and encourage them to stay longer in your property? Here are some simple and effective tips.

Offer accommodation in excellent condition

One key to retaining a tenant is to offer them a well-maintained and functional place. If the tenant feels comfortable and appreciates the comfort of the apartment or house, they will have fewer reasons to leave.

Quickly repair problems

An unresolved issue can quickly degrade the tenant's quality of life. Whether it's a leak, power failure, or any other issue, it's important to respond quickly to carry out necessary repairs. Fast and efficient service shows the tenant that you are an owner attentive to their needs.

Make renovations when necessary

Over time, some parts of the property may wear out or age. Renovating the paint, replacing worn equipment, or modernizing some rooms (such as the bathroom or kitchen) can improve tenant comfort and encourage them to stay.

A modernized and well-maintained property gives the impression of a pleasant living space where one feels good, which encourages tenants to engage long-term.

Maintain open and respectful communication

Communication plays a crucial role in the owner-tenant relationship. A tenant who feels heard and respected will be more inclined to stay. Moreover, good communication allows for quickly resolving any disagreements or misunderstandings.

Be available and responsive

Respond quickly to your tenant's calls, messages, or emails. Whether discussing repairs, administrative questions, or general concerns, an available landlord shows their commitment to maintaining a good relationship.

Establish a climate of trust

Transparency and kindness are essential for establishing a climate of trust. Be clear about the rental agreement rules and stick to the commitments you've made, like the amount of charges or repair deadlines.

If your tenant informs you about an issue with hot water, respond quickly and ensure the problem is resolved as soon as possible.

Be flexible on some aspects of the contract

Flexibility is an asset for retaining your tenants. By being open to minor adjustments, you show that you are a landlord who listens to their needs.

Adjust the rent to the market

It is important to follow the real estate market trend and adjust your rent accordingly. If neighborhood rents decrease or your tenant is going through a financially tough period, considering a temporary rent adjustment might encourage them to stay rather than looking for another place.

Be flexible about personalizing the space

Some families or long-term tenants may want to personalize their space (painting a wall, changing the curtains, adding shelves, etc.). As long as these changes are minor and do not degrade the property, allowing some flexibility in this area can make the place feel more "personal" and strengthen the tenant's sense of belonging.

Offer good value for money

To retain a tenant, it is important to maintain an attractive value for money ratio. Tenants who feel confident with the price of their rent and the quality of their accommodation are less likely to move elsewhere for a better offer.

Do not excessively increase the rent

A sudden and excessive rent increase may prompt a tenant to look for another place. If you must increase the rent, make sure this increase is reasonable, aligned with the local market, and justifiable (significant repairs, improvements made to the property, etc.).

Include additional services

Offering additional services can also be a deciding factor for a tenant. For example, including internet access, occasional cleaning service, or maintenance of green spaces can make your offer more attractive and make the tenant feel privileged.

Create a pleasant environment

The environment in which your property is located also plays a key role in retaining tenants. Ensuring the cleanliness of common areas, making sure the neighborhood is quiet and secure are elements that contribute to making the stay more enjoyable.

Improve common areas

If your property is part of a building with common areas (garden, corridors, entrance hall), ensure they are always clean and well-maintained. Proper maintenance of these areas improves the tenant's living environment and makes them want to stay.

Create a good atmosphere in the neighborhood

Ensuring a calm and friendly environment is an asset to retaining your tenants. If you manage several apartments in the same building, you can encourage good neighborly relations by organizing an annual meeting, for example, or by communicating common living rules.

Reward tenant loyalty

A tenant who feels valued for their loyalty and reliability is more likely to stay. You can set up incentives for tenants who stay long-term in your property.

Offer benefits after several years of rent

If a tenant stays in your property for several years without payment incident or major problem, consider offering them a benefit, such as a small rent discount, or a gift (for example, a discount on a cleaning service, or minor repairs covered by you).

Do not increase the rent every year

As a reward for the tenant's stability and regularity, you can decide not to increase the rent at every annual review. This shows you appreciate the relationship you've developed with this tenant and reinforces their sense of security.

Conclusion: Ensure the long-term retention of your tenants

Retaining tenants is a crucial element to ensure the long-term profitability of your real estate asset. By offering well-maintained accommodation, maintaining open communication, offering flexibility, and creating a pleasant environment, you can encourage your tenants to extend their stay. Additionally, by valuing tenant loyalty and adapting your offer to their needs, you will build a lasting relationship beneficial to both you and them.

Do you want more tips for managing your long-term rental successfully? Discover useful articles and resources on Housing Place to maximize the profitability of your rental investment.