Tenant turnover is a huge problem for landlords. Every time a tenant moves out, there are costs associated with advertising, cleaning, and repairs. Not to mention the loss of rent while the property is vacant.
There is also the risk that a new tenant won't be as reliable as the previous renters when it comes to paying rent and maintaining their unit. Because of this, it's in your best interest to make sure that great tenants want to stay put.
There are plenty of strategies to increase the chances of your tenants renewing a lease. Keep reading to find out our best landlord tips for lease renewal.
Be Proactive About Lease Renewal
If you want to keep great tenants, it's helpful to bring up lease renewal at least 90 days before the end of the lease. This will give the tenant plenty of time to think about your offer and make a decision.
You can ask for a lease renewal in person, or by sending a letter or email with the new lease attached. Be sure to follow up if you don't hear back within a week. Tenants may have their own conditions for renewing a lease, so you need to be open to negotiation.
Address Concerns Quickly
Tenants will be more likely to stay if they feel that they can count on you to address their concerns. Be sure to deal with any complaints or repair requests right away. Keep lines of communication open and make sure to return any messages or calls.
Maintain the Property
One of the easiest ways to keep tenants is to make your property a desirable place to live. You will need to perform preventative maintenance so all equipment stays in proper working order.
It's also a good idea to maintain the appearance of the property. Planting flowers in the courtyard or repainting the common areas will keep tenants happy and may convince them to stay.
Offer Grace Period for Rent Payment
Consider offering a short grace period for late payment. For example, if rent is due on the first, allow your tenant until the fifth to make their payment without any penalties. This will show tenants that you are reasonable and easy to work with.
When trying to convince tenants to renew a lease, small gestures can go a long way. One great incentive to offer is not increasing the rent if the lease is renewed. You may even want to consider offering a discount on the rent if they sign a two-year lease.
You can also offer other incentives such as professional deep cleaning, painting, or other upgrades to their unit. Just make sure that any upgrades that you offer are within your budget.
Property Management Companies Can Help with Renewing a Lease
If you've been struggling with retaining great tenants, you should work with a property management company. We will handle any problems that come up and make renewing a lease a breeze.
Need help with lease renewal at your property? Get in touch today to let us know how we can help!