Managing rental properties is not just about finding tenants—it’s about finding the right tenants.
The right tenants have all the qualities you already expect. They pay rent on time. They take care of the property. They follow the terms of the lease agreement, and they’re easy to communicate and work with.
You can also tell a tenant is a good match when they’re looking for a long-term home.
Successful landlords and rental property owners understand the importance of identifying and placing residents who will be likely to renew their lease agreements year after year. Long-term tenants, by their very nature, align with the goal of building sustainable and predictable rental income.
You’ll earn more and spend less on turnovers and vacancies.
Today we’re talking about how to attract those long-term tenants in the Temple rental market. How can you show them that your property is the one to choose?
Benefits to Attracting Long-Term Temple Tenants
Why does it matter? Isn’t it most important to just place any qualified tenant who applies for the property so that you can get rent coming in quickly?
Yes, and no. Finding a tenant who meets your fair housing-friendly criteria is most important. You want to embrace a consistent and objective screening process. We also recommend you look for long-term tenants instead of short-term residents hoping to just rent for a year or less. Here’s why it matters.
- Consistent and Stable Rental Income
One of the biggest advantages of long-term tenants is predictability. A tenant with a year-long or multi-year lease ensures your property is generating consistent income, significantly reducing the risks of frequent vacancies. With long-term tenants in place, you can better plan for expenses—whether it’s annual maintenance or additional investments—without interruptions to your cash flow.
- Lower Turnover Costs
Tenant turnover can be one of the most challenging aspects of property management. Each vacancy comes with costs, including advertising, repainting, professional cleaning, and sometimes even expensive renovations to make the unit move-in ready. Long-term tenants dramatically reduce these expenses by staying put, allowing landlords to save time, effort, and money in the long run.
- Improved Property Care
Long-term tenants are very good at treating rental properties like their own homes. They develop a sense of pride in their living space, often taking greater care of the property. This means fewer wear-and-tear issues, timely reporting of maintenance concerns, and, ultimately, less stress for landlords. For example, landlords frequently report fewer complaints and smoother inspections when working with long-term tenants.
- Reduced Marketing and Administrative Work
Finding new tenants is not only costly but also time-consuming. Long-term leases mean fewer rental applications to review, background checks to run, or showings to coordinate. This allows landlords to focus on other aspects of their portfolios or invest energy into enhancing their properties without constantly managing turnover logistics.
- Stronger Relationships and Clearer Communication
With long-term tenants, landlords have the opportunity to build stronger, more positive relationships. This foundation cultivates mutual respect, creates clearer communication, and often makes resolving potential disputes easier. A happy tenant is also more likely to recommend you and any other rental property you may have to friends or colleagues, adding a bonus of organic word-of-mouth referrals.
- Reduced Risk of Legal Complications
Frequent tenant turnover increases the chances of rental disputes, misunderstandings, or even legal challenges. Long-term tenants often understand your lease terms more deeply and are better aligned with your property’s policies. This leads to fewer late payments, lease violations, and unforeseen problems. Fighting off a security deposit dispute every year can become tedious.
- Better ROI Over Time
Real estate is a long-term game, and so are the benefits of long-term tenants. With lower maintenance costs, fewer vacancies, and steady rental income, properties with long-term tenants tend to yield higher ROI over time. Additionally, good long-term tenants may even accept modest rent increases, recognizing the value of staying in a place they feel comfortable.
Tips for Attracting and Retaining Long-Term Tenants
While the advantages of long-term tenants are clear, the important work for any rental property owner is to attract those tenants to their rental property in Temple. Here are some expert tips that we can provide to help you secure those potentially lucrative long-term leases:
- Set Competitive Rent Prices
Offer fair market-value rent prices based on local research and even data and analytics provided by a Temple property management expert. Overpriced units lead to high vacancy rates, while reasonably priced units attract stable tenants who see value in the property and its lease. Long-term tenants are well-educated on the local rental market. They won’t pay more than they have to.
- Create a Comfortable Living Environment
Provide a property that good tenants will want to rent for the long term. Focus on maintaining a clean, functional, and appealing property that stands out on the Temple rental market. Amenities, convenient upgrades, and timely repairs go a long way in creating an environment tenants want to stay in over the long term.
- Prioritize Tenant Screening
Carefully evaluate prospective tenants to ensure they meet your criteria. This includes background and financial checks. A little extra effort during the selection process can save you from future challenges. You’ll want to verify income and confirm there have been no past evictions. Examine rental history. When your priority is to find and place long-term tenants, you will want to see how long they’ve stayed in prior rental homes. A record of tenancies that last for a few years is far more appealing than evidence that a tenant has changed addresses every few months.
- Maintain Open Communication
Establish clear, respectful communication. When tenants feel heard, they’re more likely to extend leases. Remain open to dialogue with your residents. By providing easy access to you, tenants will trust you more, and they’ll be more likely to feel like they’re having a good rental experience. This contributes to longer leases.
Structuring Your Tenant Lease Agreement
When you have a lease available that’s ideal for tenancies that last a little longer, you’re one step closer to attracting the types of tenants you want.
Keep it flexible. When tenants are approved and ready to sign the lease and move in, offer a number of different lease terms. It could be the traditional 12-month lease that has the option to renew after that initial term, or it can be an 18-month lease or even a two-year lease. Many tenants may be willing and even eager to sign a lease agreement with a longer term. It protects them from rent increases and it allows the owner to enjoy a stable tenancy for a longer period of time.
Retaining Tenants for the Long Term
When you find and place high-quality residents, do everything you can to keep them for the long term.
One of the main reasons tenants move out of a rental home is unresolved maintenance issues. This is a terrible way to lose a tenant, we believe, and so we encourage landlords to:
- Handle repairs quickly and effectively
- Schedule preventative maintenance to avoid larger problems, particularly emergencies and deferred maintenance
- Create a list of preferred vendors and contractors who are reliable, cost-effective, and able to provide quality work
When properties are well-maintained, tenants are more comfortable and satisfied, which boosts retention rates and contributes to longer leases. They understand that owners are serious about the condition of their investment, and they’ll be more willing to partner with us to take care of it.
Another thing that can drive high turnover is a rental renewal rate that does not match the market. When the rent is too high, educated residents will move into a home that provides more value for less money. When you established your initial rental rate, you studied the market. Maybe you accessed good data from a management partner on what similar properties are renting for. At lease renewal time, do another analysis of the market. Set an increase that’s competitive in the current market. This will keep your residents in place.
One of the simplest ways to avoid resident turnover and vacancy is to offer lease renewal incentives.
To incentivize residents to renew their lease agreement, you may offer something special at renewal time, such as a new appliance, a gift card to a local shop, or maybe fresh paint or a professional carpet cleaning. Look for incentives that tenants care about, which will entice them to stay.
Does a resident want to adopt a pet? Offer a reduced pet fee. Have they asked for in-unit laundry? Consider providing a washer and dryer. These things will cost you a lot less than a turnover, and they’ll lead to a longer lease agreement. You may also want to allow residents to make some adjustments to the property that will suit their preferences. When your investment property feels like home to your residents, they will be less likely to leave.
We can tell you more about how to attract and place good tenants for the long term. Please contact us at Shine Residential Management.
A property management company based in Harker Heights, Shine Residential Management cares for exceptional single-family homes throughout Central Texas, including in Killeen, Temple, Belton, Copperas Cove, Salado, and Georgetown.
