The Economics of Tenant Retention: Happy Tenants Drive Profit
Tenant retention is one of the most cost-effective strategies property managers and owners can implement. Think about it: a good tenant is your unofficial business partner. As long as they’re satisfied with the unit, you will benefit from uninterrupted rent payments.
Alternatively, tenant turnover is costly. Recruiting new occupants involves spending money on marketing while losing money on a vacant unit. The profit you lose during the turnover period could be altogether avoided if you focus on retention. By maintaining your property and fostering tenant satisfaction, residents are encouraged to remain in the unit, giving you steady cash flow and maximized profits.
In this guide, we’ll break down the economics behind tenant retention and look at how applying strategies to reduce turnover will have a positive impact on your profits, operating budget, and long-term success as a rental property manager.