Strategies for Reducing Tenant Turnover: A Landlord's Retention Playbook

By PropsManager Team · Tenant Relations · Sep 16, 2025

I'll never forget the year I lost three tenants in a single quarter. Between vacancy losses, repainting, carpet cleaning, advertising, and the time I spent showing units on weekends, that stretch cost me north of $14,000. That's when I finally sat down, did the math, and realized something obvious: keeping a good tenant is worth far more than finding a new one.

Tenant turnover is the silent profit killer in rental property investing. The National Apartment Association estimates that the average cost of turning over a single unit runs between $3,000 and $5,000 when you factor in lost rent, make-ready expenses, leasing commissions, and marketing. For a landlord with ten units, even modest turnover can wipe out an entire month's worth of portfolio income — or more.

Here's the thing, though. Most turnover is preventable. Not all of it. Some tenants move for jobs, family changes, or home purchases, and there's nothing you can do about that. But industry surveys consistently show that 40–60% of tenants who leave do so because of something the landlord could have controlled: slow maintenance, poor communication, unreasonable rent hikes, or simply feeling unappreciated.

This guide breaks down the strategies that actually work. Not the fluffy "be nice" advice you'll find recycled on every real estate blog, but the specific, tactical moves that experienced landlords use to keep renewal rates above 70%.

The Real Cost of Tenant Turnover

Before we get into the strategies, let's make sure the math is crystal clear. Because once you truly understand what turnover costs, you'll never skip a lease renewal conversation again.

Direct Costs Per Turnover

And that table doesn't even include the intangible costs — the stress, the weekends lost to showings, or the risk that your next tenant won't pay on time. A tenant who's been in place for three years and always pays by the 1st? That person is worth their weight in gold.

The Compounding Effect

Say you own a duplex renting at $1,400/month per unit. If one tenant turns over every year and you average 30 days of vacancy plus $2,000 in make-ready costs, that's $3,400 in annual losses — just from one side of a duplex. Over five years, that's $17,000. Compare that to a scenario where the tenant stays all five years with modest $50/year rent increases, and the difference in net income is staggering.

Retention isn't just a "nice to have." It's a core business strategy.

Respond to Maintenance Requests Fast — No Excuses

Ask any property manager what drives tenants away faster than anything else, and they'll tell you the same thing: ignored maintenance requests. Every. Single. Time.

A 2023 survey by Buildium found that 62% of tenants ranked maintenance responsiveness as the most important factor in their decision to renew a lease. Not rent price. Not location. Maintenance.

The 24-Hour Rule

Here's my rule: acknowledge every maintenance request within 24 hours, even if you can't fix it that fast. Tenants don't expect you to teleport a plumber to their unit at midnight (well, most don't). What they do expect is confirmation that you heard them and a timeline for resolution.

"Got it, scheduled a plumber for Thursday morning — does that work for your schedule?" That text takes 15 seconds and tells the tenant they matter.

Build a Reliable Vendor Network

The landlords who struggle most with maintenance aren't the ones who don't care — they're the ones who don't have a reliable plumber, electrician, or handyman they can call on short notice. Take time to build relationships with 2–3 vendors in each trade. Having backups matters. When your go-to plumber is booked solid, you need a plan B that won't leave your tenant waiting a week with a dripping faucet.

Using PropsManager's maintenance tracking features, you can log requests, assign vendors, and keep tenants updated with automated status notifications. That kind of transparency builds trust — and trust keeps leases renewed.

Preventive Maintenance Matters

Don't wait for things to break. Schedule annual HVAC servicing, check smoke detectors, inspect caulking around tubs and windows, and keep gutters clean. Proactive maintenance prevents expensive emergency repairs and signals to tenants that you take the property seriously. For a seasonal approach, check out our guide on summer maintenance tips for rental properties.

Be Strategic With Rent Increases

Let me be blunt: raising rent is not optional. Costs go up — insurance, property taxes, maintenance materials — and your rent needs to keep pace. But there's a right way and a wrong way to do it.

The Vacancy Math

Suppose your current tenant pays $1,500/month and you want to bump rent to $1,600. That $100/month increase nets you $1,200/year. Sounds nice, right?

Now suppose the tenant balks, moves out, and it takes you 45 days to re-lease the unit plus $2,500 in turnover costs. You've just lost $4,750 ($2,250 in lost rent + $2,500 in expenses). Even if you get $1,600 from the new tenant, it'll take nearly four years of that $100 premium to break even versus just keeping the original tenant at $1,550.

That extra $50/month you didn't push for? It saved you thousands.

Best Practices for Rent Increases

• Keep it at or slightly below market rate for good tenants. If the market says you could charge $1,600 but your excellent tenant is at $1,500, meet in the middle at $1,550.
• Give plenty of notice. Don't spring a rent increase 30 days before renewal. Start the conversation 90 days out.
• Explain the why. "Property taxes went up 8% this year, and my insurance jumped. I'm only passing along a fraction of that increase." Most reasonable people get it.
• Frame it as a partnership. "I'd rather keep a great tenant like you than deal with the hassle of turnover. Here's what I can offer."

Annual Increase Caps to Consider

A good rule of thumb: 3–5% annually for strong markets, 2–3% in stable markets. Anything above 5% should come with significant justification — like a major renovation or dramatic market shift. Even then, expect pushback.

Respect Your Tenants' Space and Privacy

This one sounds obvious, but you'd be amazed how many landlords blow it. I've heard horror stories from tenants about landlords who show up unannounced, enter units without notice, or text constantly about minor things.

Here are the ground rules:

• Always give proper legal notice before entering. Most states require 24–48 hours. Follow the law, no exceptions.
• Don't drive by the property to "check on things" and then mention it to the tenant. It's creepy.
• Limit property inspections to once or twice a year, scheduled well in advance but consider our advice in the importance of regular property inspections.
• Communicate through appropriate channels — not random drop-ins.

Your tenants aren't renting a room in your house. They're paying for the right to occupy a private dwelling. Respect that boundary, and they'll respect the property in return.

Offer Meaningful Renewal Incentives

Here's where a lot of landlords get creative, and it pays off. A renewal incentive doesn't have to be expensive to be effective. It just has to feel personal and valuable.

Incentive Ideas That Actually Work

• Cosmetic upgrades: "Renew for two years and I'll replace the kitchen faucet and add a new ceiling fan in the bedroom." Cost to you: $200–$350. Value to the tenant: huge.
• Professional carpet cleaning or deep clean: Runs $150–$250 and makes the place feel new again.
• Small rent discount for longer terms: "Sign a two-year lease and I'll keep the rent the same for the first year." You lose a small increase but lock in 24 months of guaranteed occupancy.
• Appliance upgrades: A new dishwasher or microwave runs $300–$500 installed. If it keeps a tenant for two more years, the ROI is obvious.
• Gift cards or a rent credit: A $100 Amazon gift card or a $100 credit on next month's rent costs you very little and generates goodwill.

The Timing Trick

Don't wait until the lease is about to expire to make an offer. Reach out 90–120 days before the lease end date. The earlier you initiate the renewal conversation, the less likely your tenant is to start browsing listings. Once they start looking, you're already losing.

PropsManager's lease management tools can send automated renewal reminders well in advance, so you never miss that window.

Communicate Like a Professional, Not a Landlord Stereotype

Nobody wants to deal with a landlord who only reaches out when rent is late or something is wrong. The landlords with the best retention rates are the ones who communicate proactively and professionally.

What Good Communication Looks Like

• Seasonal reminders: "Hey, just a heads up — temps are dropping below freezing this week. Make sure to disconnect garden hoses and let faucets drip overnight if it gets below 20°F."
• Improvement notices: "We're upgrading the exterior lighting next week. Here's when the crew will be there, and how it affects parking."
• Appreciation notes: A simple holiday card or a "thanks for being a great tenant" message once a year goes a long way.
• Prompt responses: Even if the answer is "I don't know yet, but I'll find out," respond quickly.

Use Technology to Stay Organized

Managing communication across multiple tenants, multiple properties, and multiple maintenance requests is impossible with just a phone and a notebook. That's exactly why tools like PropsManager exist. Centralized messaging, automated reminders, document sharing, and tenant portals ensure nothing falls through the cracks — and that your tenants feel heard.

Screen Thoroughly at Move-In

Wait — a tenant retention article is telling me to screen better?

Yes. Because retention starts before the lease is signed. If you rent to someone who's a poor fit — financially, behaviorally, or otherwise — no amount of renewal incentives will keep that tenancy healthy.

What Thorough Screening Includes

• Credit check with a minimum threshold (most landlords use 620+, though this varies by market)
• Income verification at 3x monthly rent minimum — and learn how to spot fake pay stubs during screening
• Rental history with direct calls to previous landlords (not just the current one, who may want to offload a bad tenant)
• Background check for eviction history, criminal records per local laws
• Employment verification with current employer

Investing time upfront in screening means you're far more likely to end up with tenants who pay consistently, care for the property, and actually want to stay long-term.

Create a Sense of Community

This applies more to multi-unit properties, but the principle holds everywhere: tenants who feel connected to where they live are less likely to leave.

For apartment buildings or multi-family properties:

• Keep common areas spotless. A dirty hallway or unkempt lawn broadcasts "the owner doesn't care."
• Enforce community rules consistently and fairly. Nothing drives good tenants out faster than an unaddressed noise complaint or a neighbor's junk in shared spaces.
• Small touches go far — a clean package room, well-lit parking, seasonal decorations in the lobby.

Even for single-family rentals, maintaining the exterior, keeping landscaping tidy, and being responsive to neighborhood-level concerns (like a broken streetlight or a code enforcement issue) shows tenants you're invested in their quality of life.

Handle Complaints and Conflicts Like a Pro

Complaints are inevitable. How you handle them determines whether a tenant renews or starts Googling "apartments near me."

The Framework

1. Listen first. Don't get defensive. Let the tenant finish.
2. Acknowledge the issue. "I understand why that's frustrating."
3. Take action. Even if you can't fully resolve it, show you're making an effort.
4. Follow up. After a resolution, check back in. "Is everything good now? Anything else?"

Noise complaints between units, parking disputes, pest issues — these things happen. The landlords who retain tenants aren't the ones who never have problems. They're the ones who handle problems quickly and fairly. For more on this, see our post on why clear communication is your best legal defense.

Tenant Retention Checklist

Use this checklist every quarter to keep your retention game sharp:

• All maintenance requests responded to within 24 hours
• Lease renewal conversations started 90+ days before expiration
• Rent increases benchmarked against local market rates
• Renewal incentives prepared and communicated
• Common areas (if applicable) clean and well-maintained
• Annual or semi-annual property inspection scheduled
• Tenant communication log up to date
• Vendor contact list current with backups for each trade
• Tenant satisfaction informally assessed (quick check-in)
• All legal notices and documentation properly filed

Explore More PropsManager Resources

Looking for the right property management software? Check out our in-depth guides:

• Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
• Software for Small Landlords — Built for landlords managing 1–50 units without the enterprise price tag.
• AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
• Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

What is the average cost of tenant turnover?

The average cost of turning over a rental unit ranges from $3,000 to $5,000, including lost rent during vacancy (typically 30–45 days), cleaning and make-ready repairs, repainting, advertising, tenant screening, and administrative time. For higher-rent properties, the cost can easily exceed $7,000. This is why even modest investments in tenant retention — like a $200 appliance upgrade or a slightly below-market rent increase — often deliver significant returns.

How far in advance should I start the lease renewal conversation?

Start the conversation 90–120 days before the lease expiration date. This gives both you and the tenant enough time to discuss terms, negotiate any changes, and avoid a last-minute scramble. Going earlier also reduces the chance that your tenant starts browsing other listings out of uncertainty. Property management platforms like PropsManager can automate these reminders so you never miss the window.

What's a reasonable annual rent increase for a good tenant?

For reliable tenants in stable markets, a 2–3% annual increase is standard. In strong or rapidly appreciating markets, 3–5% is typical. The key is to benchmark against local market rents and factor in turnover costs. If pushing an extra $50/month means risking a $4,000 turnover event, the math doesn't work. Always frame the conversation transparently — explain what's driving the increase and give ample notice.

Do renewal incentives actually work to keep tenants?

Absolutely. Research from the National Multifamily Housing Council suggests that properties offering renewal incentives see 10–15% higher renewal rates compared to those that don't. The incentive doesn't need to be extravagant — a professional carpet cleaning ($150–$250), a small appliance upgrade ($300–$500), or even a $100 rent credit can tip the scales. The gesture signals that you value the tenant and want them to stay, which matters more than the dollar amount.

How can property management software help reduce turnover?

Property management software streamlines the key processes that drive tenant satisfaction: faster maintenance response, professional communication, automated renewal reminders, and transparent record-keeping. With a platform like PropsManager, you can track maintenance requests in real time, send automated status updates to tenants, manage lease renewals proactively, and maintain organized records. Tenants who feel their landlord is responsive and professional are significantly more likely to renew. Explore our full feature set at PropsManager features or request a demo.

Keep Your Best Tenants — And Your Bottom Line

Tenant retention isn't about being a pushover or undercharging for rent. It's about running a smart business. Every strategy in this guide — from fast maintenance to strategic rent increases to renewal incentives — comes back to one simple principle: make it easy for good tenants to stay.

The landlords who consistently achieve 75%+ renewal rates aren't doing anything revolutionary. They're responsive. They're fair. They communicate proactively. And they treat their rental business like a business, with systems and processes that prevent things from slipping through the cracks.

If you're still managing renewals on sticky notes and tracking maintenance requests in your head, it might be time for an upgrade. PropsManager gives you the tools to automate lease renewals, streamline maintenance, and keep tenant communication organized — all from one dashboard. Check out our pricing plans or schedule a demo to see how it works for your portfolio.

Your best tenants are already thinking about next year. Make sure you're giving them a reason to stay.