4 Reasons To Keep Tenants Happy

On the surface level, the money collected from a tenant is the only contributor to the success of your rental property. However, a satisfied tenant can significantly improve your bottom line. Satisfied tenants are one of the key indicators of a well-managed property, reflecting the overall health of your rental.
Today, we’ll discuss what makes happy tenants valuable, aside from collecting rent.
Tenant Retention
Tenant retention is one of the most important benefits of keeping tenants happy. When your tenants feel valued and comfortable in their home, they’re more likely to renew their leases and extend their stay. This reduces turnover rates, which can oftentimes involve spending on new advertising, tenant screening, and other preparations for the rental unit. In general turnover rates can cost upwards of $5,000 dollars depending on your property. If multiple tenants decide to move out, this can not only significantly impact your monthly income, but it can also begin a financial snowball effect that can be difficult to recover from. Through quick resolutions to maintenance, respectful communication, and fair treatment, landlords can encourage long term residency. By retaining good tenants for long periods of time, your income becomes more predictable and stable.
Tenant Cooperation
Keeping your tenants satisfied often results in rules and lease terms being respected. When a tenant feels as though they're being treated fairly, they’re more likely to follow community guidelines, avoid lease violations, and respect their neighbors. Sharing a positive relationship with your tenants also fosters a sense of shared responsibility for the property, meaning if and when they do move out, the unit could be easier to prepare for the next tenant. Additionally, satisfied tenants are also more likely to cooperate with landlords' inspection and maintenance visits if given adequate notification. They are also more likely to report issues when they’re minor and easily fixed, instead of waiting until the repair becomes an expensive major repair. This can significantly extend the lifespan of core systems such as the plumbing, electric, or HVAC system.
Positive Reputation
A positive living experience can lead some tenants to recommend your rental to their friends or family. For investors with multiple units, having a tenant recommendation can significantly reduce the costs associated with turnovers. Word of mouth referrals are incredibly useful for bringing in new tenets in a competitive rental market. A positive reputation can also help your rental property stand out from the competition and attract prospective tenants looking for a well-maintained rental with an efficient landlord. This same positive reputation can also help attract prospective tenants who rely on online reviews when searching for potential rentals.
Property Value
Well-maintained rental properties with stable tenants generally experience value appreciation. Proper maintenance can prevent severe structural issues while preserving the core systems, which can be incredibly expensive if left in disrepair. During periods of vacancy, a property can slowly deteriorate if the unit is left empty for a long time. Whereas if you have a long-term tenant, they’re encouraged to treat the rental with better care, as it's their long-term home. This stability also allows landlords to plan and perform the rental’s upkeep more efficiently. This will also improve your curb appeal, which can attract renters or, in some cases, buyers.
Tenant satisfaction is crucial for landlords to have a stable long-term income, by reducing turnover rates and improving consistency. By prioritizing the needs of your tenants, a landlord can protect their investment while increasing their overall income. If you’re unsure how to show your tenants appreciation or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our
Owner Application online.
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