How to keep your best renters: Proven retention strategies for property managers

Even in today’s competitive rental market, retaining quality renters is more important than ever. For property managers (https://ailo.io/manage/property-managers) and property investors (https://ailo.io/investors) alike, renter retention translates to reduced vacancies, consistent rental income, lower operational costs, and stronger community ties. Simply put, long-term renters create long-term value.

Finding a new renter takes time, energy, and resources—from advertising and screening to property preparation and onboarding. Instead, agencies that focus on keeping existing renters happy not only build a better reputation but also strengthen their portfolio performance. Implementing strategic and systematic approaches to retention is now a must for every successful property manager.

High renter turnover impacts more than just vacancy rates. Every time a renter leaves, there are costs associated with cleaning, maintenance, advertising, and administrative effort. There’s also the potential loss of rental income during vacant periods, which can put pressure on cash flow (https://ailo.io/blog/tax-depreciation).

Additionally, long-term renters tend to take better care of the property, report issues early, and build better relationships with neighbours. From a business perspective, renters who stay longer reduce risk and increase efficiency for both agencies and landlords (https://ailo.io/blog/do-i-need-landlord-insurance). Retention is not just about avoiding churn—it’s about creating a stable, scalable business.

A renter retention rate above 75% (https://www.vts.com/blog/the-dos-and-donts-of-tenant-retention) is typically considered healthy in the Australian rental market. Some high-performing agencies even report retention rates upwards of 85% for their best-managed portfolios.

Why does this matter? Because data shows that the average cost of a single renter turnover can exceed $1,800. That’s a direct hit to the bottom line each time a property changes hands. Add to that the hidden costs; lost time, extra inspections, and reputational risk, and the value of a high retention rate becomes crystal clear.

Here are six proven renter retention strategies that every Australian property manager can implement.

Transparent and proactive communication builds trust between renters and property managers. When renters feel heard, informed, and respected, they’re far more likely to stay.

Using platforms like Ailo enables property managers to engage with renters through in-app messaging, push notifications, and automated reminders. Renters can instantly see when rent is due, track maintenance requests, and ask questions - all within a few taps. This consistent visibility builds rapport and helps prevent misunderstandings.

For example, sending a simple “thank you” after a renter responds to a query or a friendly reminder before an inspection can go a long way in shaping a positive rental experience.

Quick and professional attention to maintenance issues shows renters that their comfort and safety matter. A well-maintained home isn’t just a livable space, it’s a symbol of respect.

Property managers using Ailo can easily coordinate and track maintenance requests, reducing lag time and improving accountability. Renters appreciate knowing when issues will be fixed and who will be attending to them.

Setting rent at fair market rates is one of the most sensitive elements of renter retention. Excessive increases can force good renters to leave, even if they’re otherwise happy.

Smart property managers take a data-driven approach, benchmarking against similar properties and offering transparency in communications. Giving renters plenty of notice about rent changes, and explaining the rationale behind them, can increase acceptance and reduce frustration.

Proactively seeking feedback demonstrates that you value your renters’ opinions. It also helps identify potential issues early, giving you a chance to improve before frustrations escalate.

Surveys, feedback forms, and informal check-ins can all be used to gauge sentiment. Ailo makes it easy to seek and review renter concerns - with quick and less formal channels like Chat. With all communication in one place and accessible by every team member, it’s easy for everyone to stay in the loop too.

Following up on feedback not only improves service but also deepens loyalty. Renters are more likely to renew leases when they feel their voice is acknowledged and their home is cared for.

Retention starts with finding the right renters in the first place. Thorough pre-screening helps match renters to properties that suit their lifestyle, budget, and expectations, making them more likely to stay long-term.

This includes verifying income, rental history, and references. But it also involves clear communication during onboarding, so renters understand the expectations and feel aligned with the agency's approach from day one.

Nothing drives renters away faster than feeling unsafe in their own home. Property managers must prioritise regular safety inspections and quickly address hazards such as broken locks, poor lighting, or structural issues.

Demonstrating a consistent commitment to safety and property compliance reassures renters and reduces risk for property owners. It’s also a legal obligation that, when done right, can enhance the renter's sense of wellbeing and security.

By implementing these strategies, property managers can create long-lasting relationships, reduce operational inefficiencies, and boost portfolio performance. With Ailo, property managers can free up time from routine tasks and invest more energy into what truly matters - keeping great renters happy and renewing.

The average cost of replacing a renter in Australia is estimated at around $1,825. This includes advertising, vacancy periods, administration, incidental repairs, and property preparation costs.

Even a modest budget can make a big difference. Gestures such as birthday cards, move-in welcome packs, or a thank-you gift at lease renewal time show that you care—and renters remember that when deciding whether to renew.

Digital tools like Ailo streamline communication, automate reminders, and simplify payments and maintenance requests. This reduces friction in day-to-day interactions, making it easier for renters to stay informed, feel connected, and resolve issues quickly.