Finding quality tenants is challenging, but keeping them is equally important and far more cost-effective. Every time a tenant moves out, you lose money through vacancy periods, advertising costs, cleaning, repairs, and the risk of getting a problematic replacement. Groupe Murray reveals proven strategies that keep excellent tenants happy and reduce your turnover costs significantly.
The True Cost of Tenant Turnover
Most landlords underestimate how expensive losing a good tenant really is. The average cost of turnover ranges from $1,500 to $5,000 per unit, depending on size and market conditions.
Consider the vacancy period while you find a new tenant, typically one to two months of lost rent. Add advertising costs for listings and professional photos. Factor in cleaning, painting, and minor repairs between tenants. Include your time spent showing the property, screening applicants, and processing paperwork.
The hidden costs hurt even more. A new tenant is an unknown risk who might pay late, damage property, or require eviction. You’re also starting fresh with the lease enforcement process. Meanwhile, your proven good tenant who always paid on time and maintained the unit is now someone else’s asset.
Frederic Murray emphasizes that retaining one good tenant for an extra year saves more money than finding the “perfect” new tenant. Focus your energy on keeping the quality tenants you already have.
Smart landlords invest in retention strategies that cost far less than turnover. A $500 investment in tenant satisfaction can easily save you $3,000 in turnover expenses.
Respond Quickly to Maintenance Requests
Nothing frustrates tenants more than ignored or delayed maintenance requests. Quick, professional responses to problems demonstrate that you value your tenants and take property care seriously.
Establish a clear system for tenants to submit maintenance requests through online portals, email, or a dedicated phone line. Acknowledge every request within 24 hours, even if repairs will take longer.
Prioritize urgent issues like heating failures, water leaks, or security problems. Address these immediately, even if it means calling contractors after hours. Non-urgent repairs should be handled within one week maximum.
Groupe Murray maintains relationships with reliable contractors who provide priority service. This network ensures tenant issues are resolved quickly and professionally, building trust and satisfaction.
Keep tenants informed throughout the repair process. If a part needs ordering or scheduling is delayed, communicate proactively rather than leaving tenants wondering when help will arrive.
Maintain Competitive Rents While Rewarding Loyalty
Excessive rent increases drive away good tenants faster than anything else. While you need to keep pace with market rates, losing a quality tenant to save a few hundred dollars monthly is false economy.
Research comparable rents annually before sending renewal notices. If your current rent is already at or above market rates, consider offering a lease renewal at the same rate or with a minimal increase.
For exceptional tenants who always pay on time, maintain the property well, and cause no problems, consider offering a loyalty discount or skipping the increase entirely. The $50 monthly “discount” costs you $600 annually but saves potentially $3,000 in turnover expenses.
Frederic Murray uses a tiered approach to rent increases based on tenant quality and market conditions. Long-term, problem-free tenants receive the most favorable treatment, encouraging them to stay for years.
Communicate the value proposition when you do increase rents. Remind tenants of recent improvements, highlight how your property compares to market rates, and emphasize your responsive maintenance and professional management.
Keep the Property Well-Maintained and Updated
Tenants who feel proud of where they live are more likely to stay long-term. Regular maintenance and periodic updates keep your property competitive and desirable.
Conduct annual property inspections and address any issues proactively. Replace worn carpets, repaint common areas, update lighting fixtures, and fix minor problems before tenants need to report them.
Make strategic upgrades that improve tenant experience without requiring major investment. Install modern door locks, upgrade bathroom fixtures, add USB outlets in convenient locations, or improve outdoor spaces with seating and landscaping.
Groupe Murray schedules regular property improvements across their portfolio, ensuring buildings remain attractive and competitive. These investments pay dividends through higher retention and the ability to command premium rents.
Consider seasonal gestures like professional snow removal that exceeds expectations, spring landscaping that beautifies the property, or summer amenities like BBQ areas that enhance tenant lifestyle.
Build Positive Relationships With Professional Communication
The landlord-tenant relationship significantly impacts retention. Professional, respectful communication creates an environment where tenants feel valued rather than merely tolerated.
Respond to all tenant communications promptly and courteously, even when the answer is no. Explain decisions clearly and reference lease terms or regulations when necessary.
Remember important dates like lease anniversaries or move-in dates with a brief acknowledgment. A simple “Happy one-year anniversary in your home” email costs nothing but builds goodwill.
Handle conflicts diplomatically and fairly. When issues arise with noise complaints, parking disputes, or lease violations, address them professionally without being confrontational. Give tenants the benefit of the doubt when appropriate.
Groupe Murray trains their property managers in professional communication that balances firmness with respect. This approach resolves issues while maintaining positive relationships.
Respect tenant privacy by providing proper notice before entries, limiting inspections to reasonable frequency, and only entering for legitimate purposes. Tenants who feel their home is truly theirs are more likely to stay.
Offer Lease Renewal Incentives
Proactive retention strategies show tenants you value them and want them to stay. Small incentives can tip the balance toward renewal instead of moving.
Contact tenants 60 to 90 days before lease expiration to discuss renewal. This early communication shows organization and gives tenants time to consider their options without pressure.
Offer renewal incentives like a professional carpet cleaning, fresh paint in one room, a new appliance if needed, waived or reduced rent increase, or upgraded amenities. These gestures cost far less than turnover.
Consider multi-year leases for your best tenants with guaranteed maximum rent increases. This arrangement provides you with income stability while giving tenants predictability and potential savings.
Frederic Murray has found that offering a $200 renewal incentive (like professional cleaning) results in 30% higher retention rates, saving thousands in turnover costs.
Make the renewal process easy with online signing options, flexible lease start dates, and clear communication about any changes to terms or rent.
Create a Sense of Community
Tenants who feel connected to their building and neighbors are significantly less likely to move. Foster community through thoughtful initiatives that require minimal investment.
Organize occasional building events like summer BBQs, holiday gatherings, or community clean-up days. These events don’t need to be elaborate—simple, casual gatherings encourage neighbor connections.
Create communication channels like a building Facebook group, newsletter, or bulletin board where tenants can connect, share recommendations, or coordinate activities.
Recognize long-term tenants publicly through newsletters or building updates. Celebrating tenants who’ve been with you for five or ten years creates positive recognition and sets an example.
Encourage tenant feedback through annual surveys asking about their experience, desired improvements, and satisfaction levels. Acting on constructive feedback demonstrates that you value tenant input.
Groupe Murray implements community-building strategies across their properties, creating environments where tenants view their building as home rather than just a place to live.
Turn Retention Into Your Competitive Advantage
Tenant retention isn’t just about avoiding costs—it’s a strategic advantage that compounds over time. Buildings with low turnover develop strong reputations, attract quality tenant referrals, and command premium rents.
The landlords who succeed long-term understand that their tenants are their most valuable asset. Treating them accordingly through responsive service, fair policies, and genuine respect creates loyalty that weathers market changes and competitive pressure.
Groupe Murray has built decades of success on this principle. Our property management approach prioritizes tenant satisfaction not as a luxury but as a core business strategy. The results speak for themselves—our average tenant stays over four years compared to the industry average of less than two.
Whether you manage one unit or a hundred, implementing these retention strategies will dramatically improve your investment returns while reducing stress and workload. Start with one or two strategies and expand as you see results.
Ready to transform your tenant relationships and reduce costly turnover? Contact Groupe Murray today to learn how our proven retention strategies can improve your property’s performance and profitability. Let us show you how treating tenants right benefits your bottom line.
