If you want to maximize profitability in your rental property portfolio and simultaneously make your life a little easier, you should prioritize keeping your tenants happy. But why is this so important and what steps can you actionably take to keep your tenants happy?
The Value of Tenant Happiness
Happy tenants who feel both satisfied and appreciated are massively beneficial for your property management strategy.
Happy tenants are:
- More likely to pay rent in full and on time. If a tenant is upset or dissatisfied with the way you’ve been running the property, they may choose to withhold rent or be more likely to miss payments. If your tenants are generally satisfied, they’ll make payments on time more consistently.
- More likely to continue occupying the property. Every landlord knows that tenant retention is crucial for maximizing profitability. The longer you keep your tenant, the better. If your tenant is very satisfied with how things are going, they’ll be more likely to renew their lease when the time comes.
- Less likely to complain unnecessarily. There are always legitimate complaints to sort out, whether a tenant is complaining about a leaky roof or a problematic neighbor. But some issues are minor and generally not worth addressing. If your tenant is overall satisfied with their experience, they’ll be less likely to complain about these trivial matters.
- More agreeable in negotiations and discussions. Similarly, happy tenants are more polite and agreeable in negotiations and discussions. Whenever you have conversations with them, they’ll work with you with a positive attitude.
- More likely to help you when you need them. Occasionally, you may need help from your tenants; for example, you may have them check on something in the house or you may need them to answer a question. Happy tenants are more likely to help in these situations.
How to Keep Your Tenants Happy
Now for the important part of the equation: how do you keep your tenants happy?
- Always be kind and polite. This is a rule you should follow everywhere and with everyone you meet: always be kind and polite. Treat people with compassion and empathy, and always think before you speak. Speaking out of frustration or speaking disrespectfully is going to instantly poison your relationship, so even in your tensest moments, it’s important to carefully control your verbiage.
- Be clear and upfront about the rules. Every lease agreement should provide thorough details on rules for tenants to follow. You should also have a verbal conversation about those rules. If you’re clear and upfront about expectations, disagreements are far less likely.
- Beautify and improve the property. Every tenant wants to live in a clean, beautiful space full of desirable amenities. If you make a concentrated effort to continually beautify and improve the property, your tenants are going to be very happy with you. This is especially valuable if you’re deliberately satisfying tenant requests.
- Respond to maintenance requests promptly. Even in amazing properties that are well-maintained, things can go wrong. If and when your tenant makes a request for a repair, it’s important for you to respond to their request promptly. If you can’t make the repair right away, at least send them a message and set their expectations for what comes next.
- Avoid unnecessary fees, surcharges, and rent increases. Depending on where your property is, you may or may not be able to increase rent at will. In any case, you’ll keep your tenants happier if you charge a fair amount for rent and avoid unnecessary fees and surcharges. Obviously, this will eat into your revenue slightly – but it’s worth it if it means keeping your tenants satisfied.
- Respect privacy. You may own this property, but your tenant has rights when living there. There are laws in place to prohibit you from invading your tenants’ privacy egregiously, but you should also make an effort to protect and maintain their privacy generally.
- Check in periodically. Every month or two, reach out to your tenant and ask them how things are going. This is your chance to gauge tenant happiness and discover any issues that might need to be corrected. Make it clear that you genuinely care about how they feel at this property – and that you’re willing to work to keep them satisfied.
- Send thank-you gifts. It’s also a good practice to send appreciation gifts, even if they’re relatively small. For example, sending a plate of cookies around the winter holidays can help establish a stronger relationship with them.
Some of these strategies will cost you a bit of money and some of them are going to be challenging. But nearly all of them are reasonably accessible. As long as you make a proactive effort to keep your tenants satisfied, you’ll find yourself in a more profitable position.
