In New York City it is important to maintain good tenants and reduce turnover. Turnover is the most expensive part of the owning and maintenance of properties. When a tenant decides to move out the minimum repairs may include painting and changing of locks. In NYC property management companies advise their landlords to consider in making strategic improvement to maximize rental revenue. This will allow to demand higher rents. However, in this day and age it is difficult to obtain qualified tenants and repairs can begin at about $20,000 if you are looking for a quick renovation. The time in construction, advertising and screening are a considerate hassle and loss of earning. This is why you would want to try to keep your tenants satisfied with their rental and stay for a considerable amount of time in your property. Though this may be something you cannot have control of, there are certain ways to diminish the turnover in your property. Here are some suggestions on some suggestion in diminished turnover:
A. Maintaining Productive and Transparent Relationships with Tenants
One of the most important aspects of the job we have as property managers is maintaining satisfying relationships with tenants. Although not every decision you make may be in the best interest of the tenant, it is always best to communicate with tenants and explain the rationale in decisions made regarding the property. Also, it is always a good idea to give them an arena for instant communication. At BJD Property Management, our property managers give tenants cell phone numbers so they can call at any time. We encourage text messaging but sometimes we understand picking up the phone is important. Also have several lines of communication when there isn’t availability via your cellular service. Calling the office or having an avenue with your property management software is a good idea as well.
It is also important to show love for your exemplary tenants. During the holiday season we normally give out gift cards or tickets to events to show our appreciation.
B. Procuring quality tenants at fair market value
It is always important to market your property at market value based on the condition of the unit. We have often seen landlords come up to us and asking for rents that exceed market value. Whether it be because of sentimental value or a misunderstanding of the present market this is the case. You have to be up-front with you landlords and explain to tell them what their units are currently valued at. It is important to also give them the opportunity to upgrade the apartments in order to get the price they would like. Fair price is important because you will not have tenants looking for lower priced units for the same amenities once their leases are up. It is also important to screen prospective tenants effectively. Presently in New York you are allowed a charge up to $20 for an application fee including a credit check. It is better to do a more thorough search including additional screenings allowed by law. Our suggestion has been if the prospective tenant is a serious contender than it is best to pay for the additional searches in order to vet your prospect thoroughly. This additional cost can save you so much more since the rent reform rules were promulgated in June of 2019. Evictions now are severely costly and can cost you up to one year in rental income plus attorney fees.
C. Pet allowance
In NYC we have found that tenants are attached to their pets and would pay an extra fee just to obtain the allowance. We have seen that tenants are more satisfied and tend not to leave if their pets are comfortable in an apartment as well. It shows goodwill to allow pets and it is becoming more prevalent for building managers to allow them.
These are some of the suggestions we have used in our property management company in maintaining quality tenants and reducing turnover. Implementing a plan such as this can save you the hassle in the long run and have revenue continue flowing for your landlords. If you are looking for a property management to effectively communicate with your tenants and maximize returns that BJD Property Management is for you.
BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx. Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.