Did you know the average cost of a single turnover is about $2500? The turnover cost of a single unit tends to range between $1,000 and $5,000 and as a property manager it’s your responsibility to reduce the turnover rate and keep it as low as possible for as long as possible.
Property management is not as easy as some people may think. If you’re just starting out in a new property management career and feel a bit overwhelmed, don’t worry, you’re not alone. To help you get off on the right foot, here are some tips and tricks to help you succeed.
Learn a Little of Everything
From account, to maintenance, to marketing, to be a successful property manager it’s important that you have an understanding of everything that goes on in your complex or property. Some of these things may not be part of your job description but to be successful you should know a little about every aspect.
Having the know-how to change locks, a broken door knob, a light bulb, etc. will help keep your tenants happy if maintenance isn’t immediately available. Understanding the accounting side of things will better help you keep track of turnover costs as well as other costs that could be hurting the company. If vacancy is a problem, having a grasp on the marketing side of things and how to bring in new tenants will also help improve your success.
Reducing Turnover with the Right Tenants
One of the most important aspects of being a property manager is keeping the turnover rate low. A lot of that has to do with providing great service to your tenants and keeping them happy but it really all starts with finding the right tenants. You want tenants that are more likely to pay on time, stay for a longer period of time and not cause damage to your property.
When vacancy is high it may be tempting to make exceptions for potential renters who are eager to move in despite being less than ideal candidates. Don’t let emotion guide you but instead be firm with your requirements. Check applicants’ history of renting, call up previous landlords, require a credit check, and establish an application fee that may deter unscrupulous tenants from applying.
Set Consistent Procedures
Make sure that you establish clear and consistent procedures in case of an incident, dispute, or maintenance request. This will help you handle the situation or issue quickly and efficiently as well as prevent any unwanted confusion or conflict. Your tenants should know what they need to do if they need repairs, an appliance is having issues, or if they want to raise a complaint with management.
You should also have a way for tenants to easily communicate with management. Possibly set up a dedicated email address that tenants are well aware of so they know how to contact you for any issues or complaints.
Communicate Community Rules & Regulations
To avoid conflicts or issues, make sure that you communicate any rules and regulations for the common grounds. Each tenant should have a copy and should know what these rules are so there is no confusion about them in the future. For instance, if you use parking permits to monitor the parking lot of your complex, each tenant should be fully aware of this requirement. They should also know what they need to do if they need to replace their permit or get a new one.
Any other rules such as what can be left on the balcony or patio, where tenants can park, pool rules and regulations, etc. should be communicated with each tenant. You may also consider having a first, second, and third offense system in place to give your tenants notice or a warning before actually receiving a fine or penalty.
Create Relationships with your Tenants
One of the best ways to ensure your tenants stay happy and are less likely to leave is to foster positive relationships with them. Showing integrity and care in your work trickles down to happy tenants with lower turnover. Communication is a large part of that and showing your tenants that you are there for them, that you’re reachable, and that you care about their concerns will lead to long-term relationships and long-term clients.