The power of happy tenants

Are your tenants happy with your property management efforts? Like shouting from the rooftop, singing your company’s praises kind of happy? 📢

They should be. And if not, it’s the point you should get them to. Residents who are happy with their property’s maintenance are three times more likely to renew leases. Also, a renewing tenant is worth an extra $900 on top of their rent payments. 

Put another way, focus on tenant satisfaction, and you’ll hear that almighty cha-ching more often. And let’s not forget the valuable social proof and referrals you’ll receive from having tenants be loud and proud about your business. 🤑

In this article, we’ll explain how tenant satisfaction drives bigger profits and some ways to achieve it in rental property management.

Fact check: What’s the link between tenant satisfaction and well-lined pockets? 

As a property manager or landlord, you’ve probably heard countless times that keeping tenants happy is essential. But this advice doesn’t always come with a list of what’s in it for you. Let’s cover a list of benefits to expect: 

Admin and spending loads get lighter 🧺

Have you ever sat in a good mood at your desk, ready to start your day, then suddenly you’re bombarded with complaints, late rent notifications, and queries? Now, you’ve got a hopelessly long to-do list and angry tenants to deal with. All you can think about is logging out and throwing your laptop in the trash, or better yet, running away. 🏃

We’ve all been there. The good news is it doesn’t have to be this way. Improving tenant satisfaction will reduce your team’s administrative load and its overhead. This is because happy tenants are more likely to adhere to lease terms, make timely payments, and communicate effectively. Lease renewals also become smoother.

Staff happiness and engagement improve

Another knock-on effect of happy tenants is a happy team. The sad reality is that employee retention in property management is poor, with 1 in 4 leaving the industry. Staff often bear the brunt of residents’ frustrations, which takes a toll on their mental health. 24.3% of property managers say managing aggressive and abusive renters is the most stressful part of their role. Creating a positive tenant experience translates into a harmonious environment for your team. Staff’s stress levels dip, and job satisfaction rises, which fosters a more collaborative and productive workplace. This environment also powers employee engagement. 

Make strides in your scaling efforts 

When managing multiple rental properties, it’s easy to fall into the trap of busy work. Soon, sending emails, chasing tenants for rent, and filing documents take priority over scaling goals. Months go past, and you’ve made little to no progress toward your growth goals. When you focus on tenant satisfaction, you’ll get routine tasks under control. Having fewer operational bottlenecks creates more bandwidth in your team. This capacity will allow you to explore scaling initiatives. Think exploring new markets, increasing marketing and sales efforts, implementing innovative technologies, and buying new properties or enhancing existing ones. 📈

 

Preserve and build on your work 🏗️

Like most property managers and landlords, getting the business to where it is now has taken a lot of time, money, and effort. So, it’s important to protect it. Upleveling tenant satisfaction will help you keep and build on your gains. For example, satisfied tenants stick around for longer, increasing tenant retention rates. They’re also more likely to recommend your business promoting growth. This setup is crucial for maintaining your progress, driving cash flow stability, and building a solid reputation in property management.

Achieve higher profits and well-optimized cashflow 

As someone running a rental property management company, improving NOI and ROI is probably high on your list of priorities. Well, stepping up tenant satisfaction is one way to do it. As we mentioned earlier, satisfied tenants become advocates for the property, which can lead to increased referrals. Here’s where the magic happens. Organic growth reduces the need for extensive marketing efforts and tenant acquisition admin costs. Why? It’s 5X -25X more expensive to acquire customers than to sell to existing ones. Also, increasing customer retention by 5% can scale profits by 25% to 95%. 💰

How to drive tenant satisfaction headache-free

Now that it’s clear why tenant satisfaction is crucial to your business’s success, the next question is how to do it without overextending your team or budget. Let’s run through a few tips and tricks. 

 

Get renters’ feedback 📋

Before implementing any changes, it’s essential to understand tenants’ needs. Let your residents point you in the right direction. Here’s where tenant feedback surveys come in handy. While they aren’t the newest way to engage tenants, they can drive smarter decisions. To optimize the effectiveness of your survey, create a structured and professional dialogue covering all facets of the tenant experience. Some questions to include in your resident survey are: 

• How would you rate the following aspects of the property? (Some points to cover include the leasing process, move-in, cleanliness, noise, maintenance, communication, security, amenities, rent payments, resident services, renewals, and customer support)
• Have we completed maintenance requests to your liking? 
• What could we do to improve maintenance?
• How would you rate the convenience of rent payment solutions, a tenant portal, resident benefits, and amenities?
• How would you assess the helpfulness and friendliness of our staff? 
• Are there any unresolved issues in the past year that need attention?
• Have any services or staff made a positive impression?
• What’s been the highlight of living in this property?
• Do you feel safe on the property? Please explain your answer.
• Are there any areas we’ve missed the mark on?
• How would you describe living in this community? 
• How likely are you to recommend us to a friend or relative?
• Is there anything you’d like to add? 

Once you’ve created the survey, get some participants. Some great ways to increase feedback are to: 

• Ask tenants to fill out a survey or provide a review after offering a service
• Incentivize participation 
• Market the survey on the property, community grounds, and resident portal 
• Follow up on the feedback you receive to show you value their opinions and you’re committed to improving 
• Time your surveys well. Send them before or after key holidays

Top tip💡: Track your Net Promoter Score (NPS). This metric gives you a good indication of tenant satisfaction, as it shows how likely they are to recommend your service.

 

Offer flawless customer service from move-in to check-out👌

Consumers care about customer service. So, whether they have a good or bad experience, others will hear about it. Providing phenomenal customer support is essential to boosting tenant satisfaction. To polish customer support, you could:

• Automate routine tasks like sending documents, updates, reminders, confirmations, and receipts
• Work with the right contractors to complete high-quality work promptly 
• Create seamless move-in and move-out processes, complete with a comprehensive move-in guide that includes checklists, timelines, and other essential information.
• Use AI-powered tools like chatbots and virtual assistants to offer round-the-clock help. (Get this: People view properties that use intelligent assistants as five times more forward-thinking and resident-centered). 

 

Make it easy for tenants to find suitable properties and lease lengths🔎

Things change, whether it’s a tenant securing an educational opportunity out of state or a new job hours away. Such events could change their property requirements. But it’s no secret the property market has given renters a rough ride in recent years. 73% say a lack of available housing has affected them, and 34% say they struggled to find their current home. 24% of renters feel their current rental tenure doesn’t suit them, 46% don’t live in their preferred area, and just 26% say they’re satisfied with the level of security provided. 

Those are some bleak stats, but there’s a silver lining. This situation gives your rental property management company the chance to boost tenant satisfaction and shine. Help prospective and current tenants navigate life’s shifts by staying informed of their needs and offering flexibility. 

For instance, say two tenants renting a one-bedroom apartment are expanding their family. They want more rooms and outdoor space. You could assist them by:

• Negotiating the time left on their existing lease
• Suggesting two and three-bedroom houses with a garden with their budget and desired location(s)
• Focusing on properties that are child-friendly and complete with amenities, e.g., playground, cress 
• Offering flexibility on lease length
• Allow them to split rent payments to make the change more affordable (more on this later)

Set up tenant appreciation programs 🤝

Resident perks are nice. But do you know what’s even better? Recognizing and appreciating renters that have stuck around. A great way to do this is to set up a loyalty program. It can help your business grow, too. 84% of consumers will stick with a brand that offers a loyalty program. Also, top-performing loyalty programs increase revenue from consumers who use them by 15% to 25% yearly. So, study the profiles of your long-term tenants. Then, offer discounts, exclusive events, or personalized gifts. Don’t forget to vocalize your appreciation for tenants and promote the available treats for loyalty to increase signups.

 

Level up your resident experience

How tenants feel about your property affects their enjoyment and retention rates. So, it’s essential to give them the best experience possible. There are many ways to enhance your resident experience. But to start, focus on quick wins. These include personalizing and diversifying your amenities, implementing sustainability initiatives, and polishing shared spaces and units. For example, you could:

• Upgrade common areas concierge, add recreational spaces, or introduce new fitness facilities. E.g., a co-working space if you have many remote working professionals, sauna, onsen, and steam room for wellness enthusiasts
• Partner with local businesses to offer services, considering your tenant’s profiles and preferences. E.g., if you have a luxury accommodation or high-income tenants, you could provide cleaning, personal training, chef, grocery and pharmacy drops, personal shopping, and pharmacy services 💆
• Install energy-efficient appliances, solar panels, water-preserving tools, and recycling programs
• Level up your security tools and processes. E.g., with encryption, firewalls, and security certificates for your online solutions. Then, for physical security, guards, CCTV, emergency bells, an out-of-hours hotline, and lifts programmed to specific floors. Plus, smart security solutions like keyless entry with auto lock and alarm-enabled doors 👮

Top tip💡: Identify the most common profiles in your tenant base with questions during the screening process and surveys. Use this information to adjust perks so you always have ways to improve. 

Onboard flexible and digital rent payment solutions

Want a quick and painless way to improve tenant satisfaction? Step up your payment options. Tailor them to your residents’ current wants and needs. For example, Flex, a rent payments app, makes life easier for all, contributing to tenant satisfaction. Renters get financial flexibility since they can access split rent payments and manage rent on the go. Users can adjust the second payment date to make the cost more manageable, reducing late payments (subject to credit checks and terms and conditions). 

Flex also accelerates rent for owners and property managers while reducing the admin associated with it. While Flex isn’t a delinquency management solution, on-time payments are a natural byproduct, as are fewer errors and complaints. That’s why 5.5 million units offer Flex, a rent payments app, as an amenity.

Plus, you won’t have to wonder whether your company will get paid. You’ll get rent on the 1st of each month, in full. Plus, Flex has nominal fees for renters and no extra cost for your business. Some more perks of using the app include: 

✔️ Optimized cash flow

✔️ More return on investment

✔️ Higher net operating income

✔️ Happier residents and staff

The keys to unlocking renter happiness 🔑

Tenant satisfaction isn’t just a byproduct of successful property management but a driving force behind it. Happy tenants lead to positive referrals, reduced administrative burdens, and increased profitability. So, start and end your tenancies positively with hassle-free transitions. During each renter’s stay, offer optimized payment options, top security, excellent customer support, and well-manicured properties. Also, focus on building relationships and positive experiences beyond signing the lease. Soon, you’ll have a team of happy tenants going out telling the world about your business. 

Want to level up your tenant satisfaction? Make it happen with Flex.