As a landlord or property manager, one of your biggest priorities (and stressors) is ensuring that your tenants stay with you for the long haul. Lease renewals are a crucial element in achieving this goal, and with a little know-how, you can increase your odds of getting tenants to renew their leases.
What Are the Benefits of Lease Renewals?
Lease renewals offer several advantages that benefit property managers and their clients. Here are two of the biggest benefits of striving for repeated lease renewals if you're a property manager managing properties for your clients.
Avoid Turnover Cost
Preparing a rental property for a new tenant can be costly. By securing a lease renewal, you can avoid expenses like:
- Fixing damages
- Replacing broken items
This helps manage your property management business's bottom line and reduce your client's costs across the board.
Retaining a tenant through lease renewals saves you time spent on:
- Screening renters
- Overseeing move-ins
With a lease renewal, you can skip these time-consuming tasks and focus on other important aspects of your property management business.
Retention Tips to Get Tenants to Renew the Lease
You might understand the benefits of lease renewals, but do you know how to encourage renters to renew their leases with your clients? If not, here are some simple but effective strategies to encourage tenants to renew their leases.
Start Retention Efforts Early
Waiting until the last minute often means missed opportunities to address tenants' concerns. By staying proactive and engaging with your tenants throughout their stay, you have a better chance of securing their loyalty for the long term. Focus on strong tenant communication and pay attention to any complaints or suggestions they have early on.
Offer Renter Incentives
If you find it hard to retain renters, try offering renter incentives. Some ideas include promising not to increase rent upon lease renewal, offering rent discounts for a two-year commitment, or upgrading their rental property for free. Just be sure only to promise upgrades that fit within your budget.
Always answer tenants' calls and messages quickly and promptly address any complaints or rental repairs. Be friendly and approachable, and handle routine rental maintenance tasks like checking smoke alarms and cleaning gutters.
Offer a Rent Payment Grace Period
Giving tenants a few extra days to pay without penalty shows that you're reasonable and understanding. Flexibility goes a long way when renters decide whether to renew their leases.
Make Smart Upgrades
Transform an unused basement into storage space or build an outdoor patio for residents to gather. Smart investments can increase the appeal of any property without breaking the bank.
Hire a Property Management Professional
Partnering with a skilled Akron residential property manager can help make lease renewals a breeze. With our proven process, we'll make sure your property (or your clients' properties) stays marketable and fetches the best rental price with minimal hassle.
Contact us today to get started and experience the peace of mind a good property manager provides! Or, start right here with a free rental analysis.