The Trick to Keeping Long-Term Tenants

The Trick to Keeping Long-Term Tenants

Tenant turnover can quietly become one of the biggest expenses in a rental property.

Vacancy, repairs, repainting, cleaning, advertising, showings, and lost rent can quickly add up when tenants move every year.

The good news is that tenant turnover is also one of the expenses landlords have the most control over.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby break down what actually keeps tenants in a rental property long term and why tenant retention can have such a major impact on profitability.

The core idea is simple:

If you buy the right property, attract the right tenant, price it fairly, and treat them well, there is a much greater chance they stay.

And when they stay, your returns improve.

🧠 What You'll Learn

• Why tenant turnover can become one of the largest long-term rental property expenses
• How vacancy directly reduces cash flow
• Why frequent move-ins and move-outs increase wear and tear
• How repainting, repairs, and turnover costs compound over time
• Why long-term tenants can dramatically improve profitability
• Why tenant retention starts before you even buy the property
• How property layout affects whether tenants want to stay
• Why functionality matters more than investors sometimes realize
• Why location and access to amenities matter
• How commute times and transportation affect tenant retention
• Why investors need to think about the tenant profile before purchasing
• Why fair rent matters
• How overpricing can cause tenants to leave when the market changes
• Why reasonable renewal offers can protect long-term profits
• How to choose tenants who genuinely want the property
• Why strong landlord systems matter
• How tenant turnover can potentially cost tens of thousands of dollars over a 10-year hold

Tenant Turnover Is Expensive

When a tenant leaves, the cost is rarely just one missed rent payment.

A vacant property can still have:

• Mortgage payments
• Property taxes
• Insurance
• Utilities
• Condo or HOA fees
• Lawn care
• Snow removal
• Maintenance
• Advertising costs
• Repair costs
• Cleaning
• Painting

On top of that, frequent tenant turnover creates additional wear and tear.

Furniture moves in.

Furniture moves out.

Walls get bumped.

Floors get scratched.

Paint gets damaged.

Then the next prospective tenant walks through and notices those imperfections, forcing the landlord to spend more money getting the property ready again.

That cycle can repeat every year if tenant retention is poor.

Long-Term Tenants Start With the Property

Tenant retention does not begin at renewal time.

It begins when you buy the property.

Wayne and Gabby explain why investors need to choose rental properties intentionally based on the type of tenant they want to attract.

A property can have the right rent and the right number of bedrooms and still be inconvenient to live in.

For example, a family may initially rent a property with bedrooms spread awkwardly across multiple levels, only to realize after a year that the layout does not work for their children.

That creates turnover.

The same applies to:

• Poor layouts
• Awkward bedroom placement
• Lack of usable living space
• Limited parking
• Bad access to major roads
• Long commute times
• Poor proximity to groceries and amenities
• Lack of transit
• Inconvenient neighbourhood design

Tenants may tolerate those issues temporarily.

But when their lease expires, they may leave.

Make Your Property Hard to Replace

One of the strongest examples in the episode comes from a recent Edmonton rental property Wayne and Gabby filled.

Despite heavy competition in the rental market, the property generated:

• More than 3,000 clicks
• More than 200 inquiries
• Approximately 15 applications
• A signed tenant within about three days

Why?

The property stood out.

It had two large living rooms, two dining areas, an open kitchen, three bedrooms, main-floor laundry, and a yard.

Those features made the property difficult to replace.

If the tenant considers leaving in the future, finding something comparable within the same budget may be difficult.

That gives the tenant a reason to stay.

Location Matters

Tenants do not live inside a spreadsheet.

They live in neighbourhoods.

A property may look great financially, but if it takes 45 minutes to get somewhere that should take 15 minutes, that inconvenience eventually matters.

Wayne and Gabby recommend looking at:

• Grocery stores
• Shopping
• Schools
• Employment
• Parks
• Transit
• Major roadways
• Highway access
• Commute times
• Everyday conveniences

The more the property makes the tenant's life easier, the more difficult it becomes for them to justify leaving.

Price the Property Fairly

Rent is one of the most important factors for tenants.

Wayne and Gabby discuss why landlords need to understand both the quality of their product and the conditions in their local rental market.

If the property is clearly superior to competing rentals, it may deserve a premium.

But pushing rent higher simply because the market temporarily allows it can create problems later.

A tenant may stretch their budget during a tight rental market because they have limited alternatives.

When the market changes and more affordable options appear, that tenant may leave.

That small amount of extra monthly rent can become very expensive if it creates a vacancy.

Choose Tenants Who Want to Stay

One of the biggest questions landlords should ask is:

Why does this person want this property?

Do their children attend school nearby?

Do they work nearby?

Do they have family in the neighbourhood?

Does the layout fit their household perfectly?

Does the yard work for their family?

Does the property give them something that would be difficult to replace?

Those are roots.

The stronger those roots are, the more likely the tenant is to stay.

Be Careful With Renewal Increases

A small rent increase can sometimes create a very large expense.

If raising the rent another $50 per month causes a good tenant to leave, the landlord may suddenly face:

• A month of vacancy
• Repairs
• Advertising
• Cleaning
• Showings
• New tenant screening

Trying to make an extra few hundred dollars over the next year can potentially cost thousands.

Wayne and Gabby emphasize the importance of understanding your market before making renewal decisions.

Sometimes the more profitable decision is keeping the good tenant.

The Numbers Can Be Huge

Wayne walks through a hypothetical example using a rental property charging $2,500 per month.

Assume the tenant moves every year.

If each turnover creates:

• One month of vacancy: $2,500
• Repairs and touch-ups: $500

That is approximately:

$3,000 per turnover

Over a 10-year period, repeated annual turnover could potentially represent tens of thousands of dollars in lost profits.

Wayne uses the example to illustrate how tenant retention can materially change the return on investment of a rental property over time.

The small decisions matter.

The Main Lesson

Tenant retention is not one trick.

It is the result of several decisions working together.

Buy a property tenants genuinely want.

Choose the right tenant profile.

Make sure the layout works.

Choose good locations.

Offer useful features.

Price the property fairly.

Be a great landlord.

Handle repairs quickly.

Communicate well.

And be reasonable when renewal time arrives.

If tenants love the property and appreciate the landlord, moving becomes inconvenient.

That is exactly what you want.

👥 About Your Hosts

Wayne and Gabby Hillier are full-time Canadian real estate investors, entrepreneurs, landlords, and founders of REI Masters.

Through the Canadian Real Estate Investing Morning Show, they provide free education and coaching every weekday morning, sharing practical lessons from building, operating, and managing a Canadian real estate portfolio.

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