7 tips to minimise tenant turnover in rental properties

< Back to all Posts

Published: Tuesday 29th October 2024

Residential property lettings present a host of challenges for property managers and landlords, especially when they have multiple properties in their portfolios.

Despite rising rents due to inflation and interest rates affecting rental yields, demand has remained strong. As such, the market seems poised to accommodate steady rental growth, meaning that for landlords and property managers, it’s become increasingly important to maintain stable, long-term, profitable tenancies, whether renting to students, families or professionals.

There is another inherent problem with this task, in that tenant turnover is also high. Recent data from the Royal Institution of Chartered Surveyors’ (RICS) UK Residential Market Survey September 2024 report highlighted that tenant demand continues to rise. With only so many houses and apartments on the market, landlords must make smart decisions well in advance to attract prospects at the right times. 

Letting properties can be a hefty investment in its own right, but it can potentially be a lucrative opportunity. One of the key factors to consider is managing the turnover of tenants in rental properties that you lease for short periods. With a mixture of luck and smart business decisions, landlords can see potentially higher gross rental yields, which can, even with fluctuating calculable inflation rates, make the investment worthwhile.

Consider these proven strategies to help minimise turnover and enhance the likelihood of long-term occupancy rates in your property or properties.

1. Simplify the rental agreement process

Successful letting investments begin with a comprehensive, unambiguous tenancy agreement. Nowadays, most prospects – particularly younger ones – are very tech-enabled, meaning that paper-based contracts and signatures have become tiresome and relics of the past. Implementing digital and accessible solutions, particularly with secure eSignature solutions, allows landlords to:

• Generate customised lease agreements quickly
• Allow for remote signatures of tenants and guarantors, if needed
• Store, retrieve and destroy documents with ease
• Generate reminders, processes and checks efficiently

Using best-in-class eSignature solutions like those from Signable, landlords can reduce their administrative workloads while providing tenants with a modern, fast, convenient experience that they can comfortably work with from the start.

2. Make pricing as competitive as possible

Landlords, especially in tough economic times, must be considerate of fair rental pricing when it comes to other properties on the market. Prospective tenants will naturally be drawn to affordable properties, which is why it’s important to:

• Conduct diligent market research to ensure rates remain fair and competitive
• Consider offering discounts for long-term lease agreements
• Create transparent pricing structures for utilities and additional services
• Provide early renewal incentives 
• Offer zero-deposit options

Maximising rental yield is, understandably, important for landlords, but pricing properties too high will dissuade potential renters from signing on the dotted line. As of 2024, according to NatWest, the average rental yield in the UK is between 5% and 8%, with the return usually lower in areas where house prices are at the highest, namely London and the South East. Comparatively, areas like Sunderland, Burnley and Dundee average higher rental yields. As such, competitive pricing can invariably open the door to longer tenancies and reduced vacancy periods, ultimately giving landlords a better chance of a positive return.

3. Improve property management communication

When it comes to any landlord-tenant agreement, transparent communication is essential, even with an appointed estate agent acting as an intermediary. However, extended periods of silence between both parties can happen and make the relationship feel less personal.

Stronger relationships are pivotal to earning landlords long-term rental agreements, which is why it’s important to reach out to tenants regularly. 

Whether it’s providing regular property updates and check-ins, creating a simple process for reporting issues, establishing clear timescales for maintenance requests or facilitating it all through a centralised digital platform, communication should never disintegrate. Most tenants will value quick and decisive responses, and if you can demonstrate that through automation and technology, your retention and satisfaction rates could improve drastically.

4. Make smart property upgrades

Unfurnished properties often earn a bad reputation for being poorly maintained and in substandard conditions. Research suggests that well-maintained properties show lower turnover rates, so it’s in landlords’ best interests to:

• Ensure preventative maintenance checks are regular and comprehensive
• Address repairs or issues promptly and through the right channels
• Implement annual improvement plans and upgrades
• Install proper amenities and appliances like dishwashers and tumble dryers
• Maintain excellent bedrooms and communal areas with good furniture, flooring and double-glazing windows
• Install reliable smoke detectors, fire alarms and keysafes for property protection

Automating property inspections and maintenance schedules can make the entire process much more efficient, ensuring that tenants have access to facilities that improve their quality of life, rather than detract from it. 

5. Manage processes easier with technology

Property management systems simplify and streamline many of the administrative and mandatory processes required for both tenants and landlords. This can include:

• Rent collections
• Payment tracking
• Maintenance and repair requests
• Energy performance
• Regulatory utility checks

Using integrated, inclusive property management solutions, while combining eSignature platforms with cloud-based software, can make the entire process infinitely easier and less stressful for both tenants and landlords.

6. Know your (and your tenants’) rights

Turnover is, for the most part, unavoidable in certain circumstances. The 2024 Renters’ Rights Bill – whilst notably abolishing section 21 ‘no fault’ evictions – seeks to provide tenants with more certainty and reassurance as far as their homes are concerned.

New provisions allow landlords to regain possession provided they give four months’ notice, whereas tenants can end their leases with two months’ notice.

Therefore, establish clear timelines and deadlines for commitment, while incentivising tenants to renew early to ensure long-term stability. Using Signable for renewal documentation with easy eSignature integration can make this process more efficient, less complicated, and increase the likelihood of renewals.

7. Establish a strong digital presence

As with any estate agent property listing, promotion on user-friendly digital property portals and directories is vital. 

Ensure that your listing contains:

• Detailed, clear property descriptions
• High-quality photos and floorplans
• Virtual property viewing options
• Immersive, interactive content, if available
• Easy access to applications and enquiries

A strong, optimised listing helps attract quality tenants and sets expectations from the very beginning. 

Making lettings work in today’s market

Managing one or more residential properties is not an easy task for avid investment property buyers and landlords. Whatever the size of your portfolio, making rentals run smoothly requires a healthy balance of effective property management, diligence, flexibility, and assertiveness. With the help of digital solutions and smart utilisation of technology, however, landlords can find that turnover rates are reduced and thus their investments are kept more secure.

The key is to create a seamless, efficient and user-friendly experience that meets the expectations of the modern tenant while empowering landlords to maintain complete oversight of their portfolios. Digital solutions like Signable’s eSignatures are invaluable in achieving this, modernising the initial contract signing, ongoing management and renewal processes with relative ease and minimal hassle.

Streamline tenancy agreements with Signable

Ready to modernise your rental processes and administration? Create, send, and manage rental agreements more proactively and quickly with our eSignature solutions and give your tenants the professional experience they deserve in today’s market. Start your free 14-day trial today.

Dakota Murphey

Freelance Writer

Dakota Murphey is a Brighton-based, established freelance writer with experience in business growth and a strong interest in all things digital. Aside from her love of writing, she loves good times with family and friends and admits to being a bit of a film buff.