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Boost Resident Retention with SB-9

High resident retention rates are essential for single-family rental investors. Keeping turnover to a minimum is well within reach when you use the right strategies. When residents stay, you avoid vacancy losses, cut down on maintenance expenses, and enjoy a more stable cash flow. But with rising housing demands and changing property regulations, you’ve got to get creative to maintain high retention rates. SB-9 gives you a smart way to do it.

What is SB-9?

California’s SB-9 legislation allows you to divide your single-family lot and add new housing units, including duplexes. This isn't just about expanding your portfolio. Here's the deal: you can split your lot into 2 parcels, and each one can hold up to 2 units. The split needs to maintain a 60/40 size ratio, and the original parcel has to be at least 2,400 square feet. Plus, if you develop under SB-9, you’re required to live on the property for at least 3 years, which helps keep neighborhoods stable and connected.

When you combine SB-9 development with smart retention strategies, you can build a community that makes residents want to stay.

Keeping Tenants Happy While Expanding with SB-9

Keeping rent prices fair is one of the best ways to reduce turnover. Rent increases are part of the game, but keeping them reasonable helps prevent residents from looking elsewhere. With SB-9, you can build additional units and diversify your rental income, giving you the financial flexibility to keep rent more stable for your current tenants. It’s a win-win: you show residents that you value them while creating a more resilient income stream.

Now, communication is just as important. With SB-9 construction in the mix, being upfront about timelines, disruptions, and the benefits of new units makes a huge difference. When residents feel like you’re being honest and keeping them in the loop, they’re more likely to stay, even during construction.

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Quick responses to maintenance requests are also key. Adding new units under SB-9 gives you the perfect excuse to upgrade existing infrastructure, making it easier and faster to handle repairs. Better property conditions lead to happier residents who are less likely to move. And when you introduce shiny, new units, it elevates the entire property’s appeal, creating a sense of pride and community.

Take this example...

A landlord in Los Angeles subdivides a large lot and builds 2 additional units. They decide to add a shared green space and upgrade parking for both current and new residents. The result? A more attractive property that encourages residents to stay longer.

Or picture a landlord in San Diego who uses SB-9 to build a duplex while upgrading the plumbing and electrical systems in the existing home. Not only does this cut down future maintenance headaches, but it also improves living conditions for current residents, making them more likely to stay.

Incentives matter too. SB-9 opens up opportunities to rethink perks by adding shared spaces that both new and existing residents can enjoy. Maybe it’s a communal garden or better parking facilities. These upgrades make living at your property more appealing and build a stronger sense of community.

SB-9, when paired with smart retention strategies, offers a powerful way to tackle resident turnover. By thinking strategically and making thoughtful improvements, you can create a dynamic, resident-focused community where people want to stay and that’s a win for everyone.

Development Analysis calculates the max size under SB-9 for the highest return.