44 million households across the US are rental households. The rental market also becomes more competitive and important in a competitive housing market.
If you already have a good tenant using your tenant screening system, you want to do everything possible to keep them renting from you. The tenant who follows the lease and pays their rent on time is one you want to keep.
So, lease renewals become more important than landing new tenants for available properties.
Read on for ideas on how to score the tenant renewals you want and need for your properties.
1. Start Early
It's never too early to start the lease renewal process. In fact, your motto should be continuous renewal mode.
When you get a new renter and give them their rental packet, highlight information about how to renew their lease.
Provide options for how to extend a lease. This is valuable for you because an empty property or a property you have to turn over is costly.
Also, be sure to include renewal information in all communications as the end of the lease term nears.
2. Wisely Incentivize
There are many new apartment options available all the time. They offer renters incentives to sign a lease. This can work against your attempt to get a renewal.
You may also offer incentives to land new renters. Be aware of how it looks to a renter when you're willing to offer a financial incentive to a new renter but don't extend that incentive to a renewal.
You might be worried about the cost of an incentive for a renewal. Remember, though, the costs associated with turning over a property. You might be wiser to apply those costs to a renewal incentive.
3. Property Upgrades
In a competitive rental market, property owners and managers should always look for ways to upgrade their properties to keep current renters in place.
Keep common areas clean, fresh, and looking up to date. Consider what upgrades you could provide that might interest your renters.
Do you have extra storage space available? Can you create outdoor living spaces for your tenants?
4. Modernize Your Systems
Another way to land those lease renewals is to make it as easy as possible for your tenants by modernizing your systems with online tenant portals.
Renters are more tech-savvy than ever and appreciate the avenue to communicate and handle rental-related business through technology.
This includes the ability to do an electronic signing for a new lease. If your renters are already handling their business of paying rent and making maintenance requests online, it also makes for easy renewal.
5. Get Specific Feedback
You want to focus on tenant happiness. One way to do this is to learn everything you can about each unit you rent. Sure, you likely know the basics, including the number of bedrooms, size, and rent.
Until you live in a place, you probably don't know its quirks. Those quirks could keep a renter from deciding to resign a lease.
Do thorough surveys about the specific units and look for ways to improve the unit based on that feedback.
Get Those Lease Renewals from Current Tenants
The benefit of lease renewals is that you don't have the time or expense of turning over a unit. You also keep a quality tenant instead of the risk of getting a not-so-good one the next time.
If you're looking for a rental unit or are an owner who needs management services, we can help. Contact us today to learn more about our property management services.