MULTIFAMILY OWNERS: Are your tenants here to stay?

How Improving Your Offerings Can Boost Tenant Retention

When it comes to growing your multifamily holdings, reducing tenant turnover often tops the list of scalability factors. A great leasing experience doesn’t just attract new residents; it helps retain them for the long-term—which directly improves your bottom line by saving you time, money and other resources. From first-impression marketing strategies to ongoing community engagement, landlords can craft tenant retention programs that enhance resident satisfaction significantly.

Continuing our “Beyond the Books” series, Everest experts are breaking down some key approaches to improving resident experience from day one. Meanwhile, our featured pro, Everest CEO Brooke Jacob will expand on the ways resident-centric focus can strengthen your portfolio overall.

 Understanding Tenant Expectations

When searching for a rental home, all tenants have a list of ‘must haves’ and ‘nice to haves’ that help them make their decision. While personal preferences vary, our experience has shown that these core factors influence leasing decisions in most cases:

• Location – Tenants want a living space that is in close proximity to work, quality schools, and public transportation. They may also look for key attractions such as shopping centers and restaurants. 

• Safety – This factor is especially important in urban areas, where individual communities often have specific safety concerns. You can boost your building’s perceived and actual security with high-quality locks, well-lit walkways, and gated entry. 

• Amenities – Many renters have a better overall perception of apartments with newer, high-quality appliances and other amenities. Incorporating energy-efficient features is another big draw for tenants who are responsible for separate utility bills. 

• Storage – Most tenants, but especially families and couples, will specifically seek out living spaces with adequate closets, cabinets, and other storage areas. If you cannot update your spaces to accommodate more storage, you can also build storage lockers or designating storage space in a larger area, such as a basement.

• Parking – Designated and guest parking spaces are a huge attraction for most tenants. Having only enough space for your exact accommodations is a recipe for complaints, accessibility concerns, and other issues. 

• Accessibility – Mindful accommodations for disabled residents and guests can often make or break your applicant buy-in rate. Be sure to check your local guidance for parking, entry, and elevator use. 

• Outdoors – Balconies, patios, and communal green spaces like play areas all enhance the overall attractiveness and appeal of multifamily spaces. These areas give tenants more opportunities to spend time in their living communities, increasing their satisfaction.

“Tenants need to be able to picture themselves living in your building,” explains Brooke. “Understanding their needs is important, so listen to them speak.  And remember that striking the right balance of ‘blank canvas’ spaces and furnished displays can make a world of difference for converting an applicant to a paying tenant.”

5 Ways to Enhance Resident Experience

Keeping your tenants satisfied with their living arrangement requires more than just providing a reliable place to live. These 6 focal points can help you foster a more positive, long-term experience and encourage lease renewals. 

1. Transparent Terms – A well-drafted lease eliminates confusion and reduces disputes. This, in turn, fosters greater trust in your practices as a multifamily landlord.

Your leasing agreements should include key information such as:

• The length of the lease

• Your renewal policies

• The rent amount

• The rent due date 

• Penalties for late rent payments and/or discounts for early or timely payments

• Details on maintenance responsibilities for both parties

• Property rules regarding pets, noise, and amenities

• Any incentives for lease renewals and tenant referrals

“Your leasing agreements are more than just a contract,” says Brooke. “They’re one of the first impressions your tenants will get on what it’s like to live in your building. If they’re left feeling confused, dissatisfied, or suspicious, that doesn’t bode well for your tenant turnover.”

2. Consistent Communication – Just like with any business, effective communication with your target audience is a cornerstone of your business. 

Property managers should:

• Respond promptly to inquiries and maintenance requests

• Communicate over multiple channels (ex. Email, phone, tenant portals)

• Clearly convey when a message needs a response, and the response deadline

• Provide timely updates on policy changes

• Offer status updates on repairs and other maintenance calls

• Share accessible announcements on community events and opportunities

“Communication is a building block for tenant trust, “ Brooke says. “When tenants trust that you will be transparent with them, have their best interests in mind, and generally respect and appreciate them, they will be more likely to continue renting from you.”

3. Keep Tenant Privacy – While most states have laws about how landlords should conduct their business, you shouldn’t just respect your tenants because you have to. While you may own your buildings, the tenant’s residence is their personal space for as long as they pay rent. 

Property owners should always:

• Give 24-48 hours’ notice before entering a unit

• Include policies in your tenant contracts for entering a unit during an emergency

• Schedule routine maintenance and inspections at convenient times

• Handle tenant information with discretion and professionalism

“Privacy and personal space have become increasingly important in recent years,” says Brooke. “Transparent communication about your tenants’ rights works wonders in fostering trust and goodwill. Plus, it will help encourage tenants to be more compliant when you need their cooperation.”

4. Ensure Effective Maintenance – Remember how frustrating it can be to wait around for a repair person? Tenants feel that frustration x5. Keep in mind: they have little control over the repair process, so taking every detail into your own hands can make them feel disregarded. 

To keep residents happy, despite pending repairs, be sure to:

• Offer a seamless, simple way to submit maintenance requests

• Prioritize requests in order of urgency, as well as the order they were received

• Conduct regular property inspections to prevent common problems

“While property maintenance and repairs can get overwhelming, they are an absolute necessity to prevent further costs and reduce tenant turnover,” Brooke asserts. “I can recall one story from a client, where a landlord prolonged a roof repair. Lo and behold: they ended up dealing with that roof—plus water damage to the attic and the apartments below! Now, was that really worth the wait?”

5. Create a Community – Fostering a community atmosphere helps residents feel more at home in your multifamily space. This can help encourage them to keep renting—and even make referrals to future residents. 

Here are some ideas to keep the community going:

• Organize social events like holiday gatherings, kiddie groups, or fitness classes

• Offer shared amenities such as prayer rooms, lounges, coworking spaces, or pet parks

• Establish an online tenant portal or WhatsApp group for easy communication and engagement

• Set up online social groups for each building or floor, allowing neighbors to communicate with one another and leave feedback

The Big Picture of Tenant Satisfaction

Overall, investing in a positive tenant experience leads to more than just good vibes; it yields tangible benefits you’ll be able to see right in your books:

• Higher Retention Rates – Happy tenants are more likely to renew leases. This reduces turnover costs. 

• Better Property Care – Satisfied residents treat rental units with greater care and report maintenance issues more promptly. This saves you money on repair costs. 

• On-Time Rent Payments – Tenants that feel well-cared-for are less likely to miss or delay payments. This helps to improve your overall cash flow. 

“I always tell my investor clients: high-quality property management is not negotiable,” explains Brooke. “If you don’t have time to take care of it yourself, you can definitely hire professional property management companies to assist you with leasing, maintenance, tenant communication, community building or all of the above. Either way, you must stay involved and visit your property; speak with your tenants and make sure everyone is as satisfied as possible.”

Everest says: We’ve laid out great suggestions 

to enhance your multifamily experience.

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