How to Increase Resident Retention and Minimize Vacancy Losses
By Michelle Clardie on 09/22/2025.
Reviewed by Josefin Gatsby
Did you know that each vacancy costs the average American landlord around $4,000? Between lost rents, marketing costs, unit repairs, administrative expenses, and move-in incentives (concessions), replacing a tenant is expensive. In high-value markets, like Los Angeles and New York, these costs can easily exceed $5,000 every time you turn a unit.
The high cost of vacancy makes resident retention a crucial component of managing rental properties. Luckily, there are actionable strategies you can implement today to increase your resident retention and reduce vacancy losses in your role as a landlord.
Fighting Vacancy Losses on Two Fronts
To minimize vacancy loss, it’s best to come at the problem from both sides:
Increasing resident retention so you have fewer vacancies to fill, while also
Reducing each unit’s downtime between tenants.
We’ll start with resident retention, then provide tips for turning units more quickly and efficiently.
How to Increase Resident Retention
To increase resident retention, you first need to understand why tenants leave. This allows you to target solutions.
Common reasons residents vacate units include:
Rent increases beyond their budget or their opinion of “reasonable” rates
Poor maintenance response times
Unfriendly or unresponsive managementNoise, safety concerns, or issues with neighbors
Life changes, such as job relocation or moving to accommodate family needs (the one factor that property managers and owners can’t really influence)
With these reasons in mind, let’s consider ways to satisfy your tenants so they are more likely to stay.
Buy (or Build) Right
Resident retention begins even before you place the units in service. Buying a desirable property (or developing a multi-family structure that appeals to today’s renters) can help you attract and retain quality tenants. Consider the following whenever you’re looking to add a new rental property to your portfolio:
Location. Units located near public transportation, employment centers, and other community amenities are not only easier to fill, but they also give residents fewer reasons to look elsewhere.
Strength of the job market. Local employment opportunities can keep your residents in their units, whether they’re looking to advance in their careers or replace lost jobs.
Property amenities. Cost-effective amenities, like in-unit laundry and rooftop patios, can keep residents happy without costing much to maintain.
Create a Sense of Community
When your residents develop social ties within the immediate community, they are less likely to pursue other apartments further from their circle.
If you have on-site staff, encourage them to help the residents feel at home through small gestures like greeting them by name and asking about their pets, families, or jobs. You and your team can also encourage the residents to get to know each other, making introductions and hosting group events for everyone in the building.
Keep Properties Well-Maintained
Making sure the condition of the property always meets renters’ expectations can also keep them in their units longer by fostering a sense of pride in where they live.
Your maintenance plan should include:
Regular property inspections to catch issues early
Preventive maintenance (like pest control and filter changes) to minimize the risk of future problems
Ongoing outdoor maintenance to keep the grounds clean and well-groomed
Quick responses to all maintenance requests by residents
Cosmetic updates (like fresh paint and new fixtures) to keep the property feeling current as the building ages
Offer Competitive Lease Renewal Incentives
When extending lease renewal offers, be mindful of ways to incentivize residents to stay. There are several ways to encourage renewals, including:
Small discounts for early renewal
Free services upon renewal, such as professional floor cleaning or paint touchups
Free upgrades upon renewal, such as a smart security system or new fixtures (ideal if you are planning to update the fixtures before relisting the unit anyway)
Lower rental rates for longer lease terms
Flexible lease terms for those unable to commit to six or 12 months
Waived lease-break fees for househunters who plan to purchase a home and move out before the lease expires
Just make sure you balance the cost of the incentive with the benefit of the renewal.
Implement Fair and Transparent Policies
To minimize potential issues between residents (as well as those between you and your residents), it’s important to set clear expectations upfront. Your lease should contain Community Guidelines or Rules and Regulations to outline policies regarding things like noise, decorations visible outside of the unit, and pets.
If any policies need to be amended, it’s important to provide the details of the change in writing, with ample notice for residents to adjust to the new system.
Communicate with Your Tenants on Their Terms
Communication is key to minimizing misunderstandings and maintaining long-term tenant relationships. Naturally, it’s important to respond to all contact from your residents promptly and professionally. But you can also be proactive with communications, for example, checking in with residents periodically just to see if they need anything.
Technology can also help improve communication to keep your residents happy. For example, digital portals make it easy to set up recurring rent payments and track the status of maintenance requests.
How to Minimize Vacancy Losses Between Tenants
When a resident inevitably needs to move out, despite your best effort to keep them, there are several ways to reduce downtime and get the unit cash-flowing again quickly.
Start Marketing Early
In many cases, landlords can require 30-60 days’ notice from residents before they vacate. This gives you time to start marketing the unit so you can line up a qualified renter before the current one moves out.
While some jurisdictions allow the landlord to show the unit before the current resident vacates, this can be risky because the apartment is not likely to show its best while the occupant is packing. This can also create stress around scheduling. In most cases, it’s wise to invest in professional listing photos and video tours when the property is looking well (either vacant or furnished) so that you always have media ready to help prospective tenants understand what the unit looks and feels like without physically entering. These photos and videos can also help your listing stand out online.
Conduct a Pre-Move-Out Walk-Through
Pre-move-out inspections are helpful because they give you an idea of what kind of condition the unit will be returned in. This way, you can line up the necessary vendors (cleaners, painters, carpet cleaners, etc.) ahead of time.
But a pre-move-out walk-through is also helpful for the resident because they can get an idea of how their deposit may be handled. For example, if you see damage, you can warn the resident that the repair or replacement cost will be charged against the deposit.
Of course, the condition could change between the inspection and the time you receive keys. But in most cases, the changes are not dramatic, and the early peek is still useful for planning purposes.
Start the Turn as Soon as You Have Keys
Once the keys are returned by your vacating resident, you can immediately change the locks and remove any debris left in the unit. Then your team of vendors can swoop in to get the unit move-in ready for your new resident. Having a trusted network of vendors ready reduces wait times and can help you meet tight turn deadlines so your new renter can move in quickly.
Resident Retention Metrics to Track
If you are looking to improve your resident retention and minimize your vacancy losses, these metrics can help you determine whether you’re on track:
Average lease length: Longer lease lengths mean less turnover.
Turnover rate: The percentage of units where tenants move out within a given time period (often annually). Lower rates are typically better.
Renewal percentage: The share of tenants who choose to renew their lease instead of moving out. Higher percentages mean better retention.
Average vacancy days: The average number of days a unit sits empty between tenants. Lower is typically better.
You can adjust your retention strategies based on this performance data.
How to Outsource Resident Retention and Unit Turns to the Experts
If you find that you don’t have the time (or desire) to focus on resident retention, there are ways to outsource this task, along with many of the other tasks associated with direct property ownership.
One option is to hire a property manager. A property manager can collect rents, manage renewals, oversee maintenance, screen tenants, and generally handle the day-to-day operations of your properties. You may still need to approve tenants and authorize work to be done on the property, but you won’t have to be nearly as hands-on.
If you’re looking to fully outsource all landlord responsibilities for purely passive returns, consider an alternative investment model like real estate crowdfunding or syndication. These models allow investors to buy into high-value deals with reasonable investment minimums. And, because each deal is professionally managed by a project sponsor, you don’t have to invest any of your own time or energy into the property. Simply choose a real estate investment opportunity, and track the progress of the project while waiting for your returns!
Whether you manage rentals yourself or outsource to a property manager, prioritizing tenant satisfaction and quick turnovers is the key to increasing resident retention and minimizing vacancy losses for sustainable rental income.
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