How To Reduce Tenant Turnover Sofia
Tenant turnover happens when a tenant vacates a rental property. It is important to reduce tenant turnover Sofia as this is expensive for you, the owner, and for us as the property managers. The reasons are simple:
- There is often a period of at least one month vacancy.
- It is often necessary to paint and perform maintenance that would only be done if the rental property is vacant.
- There is a cost to advertise and show the unit.
- There are some times of the year (for example, winter and holidays) when it is more difficult to find tenants than other times.
- It may be necessary for the landlord to pay the cost of utilities (for example, heat and water) during the vacancy period which would normally be paid by a tenant.
- There is a disruption of your cash flow.
Turnover can demolish your bottom line. But just how much can it really cost you?
In order to place an amount on this, we’ll need to calculate some average expenses incurred each time a unit goes unoccupied. We should take into account: rent loss due to vacant units, marketing expense to find new tenants, resident screening and administration fees, maintenance costs (general cleaning, paint supplies, carpet cleaning, fixture replacements or upgrades), and staff wages.
How We Reduce Tenant Turnover Sofia
To reduce tenant turnover Sofia , we work to:
Pre-qualify all tenants.
We perform a thorough background check on all potential tenants to detect previous rental habits. Broken leases, evictions, significant legal issues, and ongoing credit payment problems are all red flags which would disqualify the applicant. We also strive to avoid “yearly movers.” Some people, for whatever reason, just like to move frequently. They will change addresses every year or so and we can see this on their application. We try to avoid these types. We really want people who will stay long term – and ensure you consistent cash flow!.
Maintain relationships with tenants after they move in.
Regular communication with tenants allows us to see what we are doing well and identify areas that need improvement.
Respond to all tenants requests quickly.
Tenants expect timely responses to their requests. Whether the tenant has a question or submits a maintenance request, Luxury Property is ready to respond with an answer or a status within a few hours. We follow through on all repairs from start to finish. This helps both the owner and the tenant avoid excessive inconvenience and provides an incentive for the tenant to stay if repairs are handled well.
Personalize service to your tenants and reward them for their loyalty.
At Luxury Property we realize that everyone’s immediate need is the most important issue to them at that moment, and we strive to make it our most important issue as well. Follow up is equally important, and lets our tenants know we continue to be ready to serve their maintenance needs.
Keep rents well within the market.
Some would argue that you need to raise rents every year. But you may not be making what you think with rent increases if they cause your tenants to move. Every time you cause a tenant discomfort, they will re-evaluate their situation and start to wonder if they might be better off elsewhere. While there are always legitimate reasons for raising rents, we at Luxury Property always try to be reasonable and objective regarding rent increases. We have even encountered situations where we were able to relocate tenants happily to another vacancy within our system of owners’ properties.