If you don't have the right lease extension strategies in place, your rental property could sit vacant for 32 days. That could equate to over a thousand dollars in lost earnings for one unit. Instead, apply these lease renewal strategies to avoid vacancies.
With these property management tips, you can improve lease renewals to boost your occupancy rate. Reaching full occupancy can maximize your profitability. Read on for our effective tips today!
Communicate Early
Tenants won't want to stay if you're unresponsive when they need help. Prioritize tenant communication as soon as renters move in. Let them know you're available to answer questions or resolve issues.
Keep track of messages and automate responses using an online tenant portal. Tenants can:
- Access lease documents
- Receive notices
- Automate rent payments
- Send maintenance requests
- Track repairs
You can use this portal to consolidate communications. When responding, be kind and professional. Try to empathize with the tenant's pain.
Send a notice months before the tenant's lease ends. They'll have time to review their options. If they decide to move, you'll have plenty of time to market the listing.
Some renters may try to negotiate their new lease terms. In fact, one in four are successfully negotiating lower rental rates. Remain patient and flexible to meet each tenant's needs.
Offer different leasing options to appeal to a broader range of requests. This can include monthly, annual, or two-year lease terms.
Provide Incentives
Improve lease renewals and keep renters happy by offering incentives. These can include:
- Gift cards to local stores or restaurants
- Free services (pest, cleaning, landscaping, etc.)
- One-month off rent
- Property upgrades
These incentives can show tenants that you value them.
Improve your occupancy rate by creating a referral program. Reward your tenants for every new renter they bring to the property. This can help you keep renters and gain new ones.
Maintain the Property
Renters won't want to stay if the property is falling apart. Schedule routine inspections to spot signs of disrepair. Complete maintenance projects in a timely manner to provide renters with a great place to live.
Consider upgrading the property to incentivize renters to stay. For example, you can offer new floors, kitchen appliances, or smart home technology. Use the feedback you receive from renters to determine which upgrades meet their needs.
Hire a Property Manager
If you're struggling to apply these tenant retention tips, outsource the process. Partner with an experienced property management company.
The best property managers ensure tenants feel cared for and appreciated. This can lead to higher tenant satisfaction rates. Your current renters will want to stay knowing they can depend on you.
Apply Our Lease Renewal Strategies Today
Neglecting to retain good tenants could lead to a high vacancy rate. Instead, apply these lease renewal strategies. With these tips, you can improve your occupancy rate and earning potential.
Our team at PMI Metrobay can help you apply effective lease extension strategies. Trust our award-winning services and proven techniques.
We have 20 years of experience perfecting the property management industry. Contact us now for a free rental analysis.
