It's no secret that rental rates have risen, and renters aren't always committed to their current units. Property management companies are charged with meeting rental demand in an ever-changing market.
Preparing units, advertising vacancies, showing apartments, and completing lease renewal paperwork can be stressful. For every lost tenant, a property owner's income is impacted.
The focus should be on keeping current tenants rather than getting new tenants to replace them. The truth is renters hate having to move every year. If they like where they are renting, they are more likely to renew their lease.
This is why you need a strategy to get tenants to renew. Let your tenants know you don't take them for granted and appreciate their business.
Check out these tips on how to get your tenants to renew with ease.
Lease Renewal Reminder
Most leases renew annually. Although a tenant has a good idea of when their lease is up for renewal, it is an expectation for property management to send out a reminder.
When you take on a new tenant, there is a process to get them to choose the current property over competitors. The same courtship should take place throughout the lease. This way, you have a better chance of them renewing.
Beginning the process 90 days before the lease expires is a good starting point. One, it lets the tenant know they don't need to look for a new place. Plus, it gives them time to consider any rate increases.
Although notice can be given verbally, it's always best to put everything in writing. This way, there is no confusion about when it's time to sign a lease.
Discuss Concerns
Renters don't want to feel like they are just a means of income for the property owner. Often, more consideration is given to a new tenant than someone renewing. Both are equally important to the success of your rental business.
Consider offering a time to meet and discuss their concerns. Some tenants will remain silent about issues, hoping to use it as leverage when it's time to renew the lease agreement.
You keep the lines of communication open by sending out surveys or newsletters. Provide a portal for tenants to submit maintenance requests and track progress as part of the tenancy agreement.
Provide Incentives
Property maintenance is essential to tenant renewal. Have you upheld your end of the relationship by maintaining the property?
What about incentives like discounts on multi-year leases or upgrading outdated appliances and fixtures?
You increase the chances of a tenant renewal if you give something in return. Maintaining the property and providing upgrades benefits both parties. A happy tenant is often your best advertisement.
Retention is the Goal
Not every tenant will accept your lease renewal. People move for various reasons, but you can do your part to keep those who are satisfied with your property.
Hiring a property management company to handle tenant renewals can increase retention rates. We'd love to discuss ways we can help with lease renewals.
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