Resident retention is the investor’s best avenue to reliable cash flow. Vacancies cost money – costs for lost rental income, preparing for the next resident, and marketing the property, to name a few! As a real estate investor, one of your top priorities – regardless of your strategy – is to keep good residents for the long haul.

But how do we do that? What do retention rates mean? How are they calculated? Keep reading to find out more!

How Retention Rates Work

We can talk about metrics all day, but they’re useless if we don’t understand how to calculate and interpret the data! Generally speaking, your rental property retention rate is calculated by dividing the number of residents (or renter households) that moved out during a twelve-month period by the total number of residents/households you had over that same period. Then, multiply that result by 100. 

Building wealth through real estate is a popular and veritable investment method, and the market is currently seeing a multifaceted expansion. Investing in property has several advantages such as capital growth, wealth creation, retirement planning and of course, tax benefits. Given that this is a highly competitive niche, being successful requires a careful strategy of planning and taking calculated risks.

Why does buy-and-hold investing work? 

It is finally 2021. Happy New Year!

Now that we're a few weeks into the New Year, it's a good time to make sure any resolutions you may have made for 2018 are on track. The goal of a new year’s resolution is to affect real, positive change in our lives. Sometimes we just don’t know where to really start and it’s all-too-easy to get stuck in a resolution rut. We can fall back into vague ideas about being healthier, learning more, earning more, and self-improvement.

Does the idea of growing your portfolio sound appealing? We've surveyed the real estate investors at Memphis Invest and for most, it does! Real estate investors should be able to have a strategy for future growth and look forward to a flourishing, successful business. That said, there’s a danger in growing too quickly. The best way to set yourself up for success in real estate investment is to maximize the efficiency of what you have, whether it’s two properties or twenty.

When you have investing in real estate down to a fine art and everything is working as well as it can, then talk about adding more investment properties to the mix.

To those not immersed in that world, real estate investors can be mysterious figures, lumped in with landlords and property management. For you and your colleagues, that isn’t the case. Real estate investors do important work that ultimately affects your landlords and your tenants. Real estate investing done properly is not a gamble nor a game, it is serious business where calculated risks are taken and where serious wealth can be built.

Whether you have your hands in the day-to-day going-ons of your investment properties or not, there are steps that you can take that will have you standing out in the sea of investors.  We have written extensively about the serious and important work of real estate investors and how we as a company are very selective as to the clients we would like to work with.