One of the most important ways to make your Oklahoma City rental properties more profitable is to build a steel cage around them so they never consider moving out of your rental property. The math is simple. When your property is vacant, it’s not earning income. If you have frequent turn over, your vacancy rate is higher AND costs to get the property ready to rent lower profitability.
There are some simple steps your property management company can take to reduce the turn over in your property. I’ll give you a few solid ideas in this blog post.
1) For starters, your property management company needs to put the right tenant in the property. Refer back to another blog post on this site for three musts when screening prospective Oklahoma City tenants. If they can’t afford the property, eventually you’ll end up evicting them WHEN they fall behind (not if). Or, if they have a history of bad habits, you should be able to determine that with careful screening.
If they are shady or criminal, they will end up doing something you don’t like…either to the property, or they will stop paying you at some point.
Some people are just more prone to moving. You’ll see that in their landlord reference. If they have lived in the same house for 5 years prior to wanting to move to your property, that is definitely a good sign.
2) The property manager needs to be responsive. When they make a maintenance request, get right on it. If there is going to be a delay, let them know what to expect. If you drop the ball, admit your mistake, apologize and make it right.
3) Your OKC property management company needs to find ways to permanently fix on-going problems, even it’s going to be more expensive than putting a band-aid on it. For example, if your property is expensive to heat and cool because it doesn’t have decent insulation in the attic and the windows are terrible, at the very least add additional insulation to the attic. You are probably better off replacing and/or eliminating the windows…but that depends on the house and how badly damaged the windows are.
The bottom line is that it’s just too expensive to have to turn over every 12 months. Your property management company needs to put systems into place that allow the tenants to live comfortably so they never consider moving.
To find more ways of increasing your tenant retention, request the FREE book “The Cash Flow Turn Around Bluepring: How to Manage Your Oklahoma City Metro Area Property Manager“. I share many of the systems I have put in place in the management company I own and operate, OKC Home Realty Services, LLC.
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