Pub. 4 2019 Issue 6

6 www.ctaahq.org Y ou probably heard this shouted to you by your parents a lot as a child (I know I did), usually warning you so that you didn’t let the flies and bugs into your house. Close the Back Door is also a common term in property management that references residents moving out of your community. Resident relations and retention are vital to successful rental housing business. Long-term residents can be the dream of every property management staff because you don’t incur the cost of replacing current residents. Typically, it costs 5-6 times more to replace a resident than to retain one. Great resident relations also build resident loyalty and a sense of com- munity, all being very positive for your bottom line. The following are a few im- portant tips on this subject that will help you be successful in retaining residents, therefore increasing your NOI: Be more selective. Consider increas- ing your minimum income and credit requirements. Residents who qual- ify with a higher minimum income requirement and credit score are less likely to struggle each month to meet their rental obligation. Residents who don’t struggle with finances are gener- ally happier residents. That makes your job easier, so why not accept the best of the best? It may create a smaller pool of potential residents to choose from, but the ones chosen are more likely to ful- fill their lease terms, renew and reduce delinquency. Be approachable. Who wants to be the “evil” landlord that is hard to reach and who barely seems to have time to devote “Close The Back Door!”