What makes a house a home? Is it memories, personalized decor, or the family you share it with?
Landlords may not realize that they can make their properties feel more like home for their tenants. It's a win-win strategy because it'll encourage them to stay and provide rental income.
Read on to learn strategies to get more lease renewals.
Use Technology
Make lease renewals as painless as possible for you and your tenants. Give them an advanced notice of 60-90 days before each of their lease renewal periods ends.
Provide a digital lease with the option to e-sign. The convenience makes them more likely to complete the process.
Reconsider Raising Rent
Over half of US renters or 22.4 million families are considered rent-burdened. This means they spend over 30% of their income on housing. Think carefully before you raise your rental rates, including when, how much, and why.
The 2022 CPI Housing Survey found that rent increases were higher for new tenants. The increase was 12.2% for tenants who'd lived in the apartment for less than six months. That went down to 3.5% for those who'd renewed their lease in the least six months.
Higher rent can scare away new tenants, so don't raise it too early.
The general rule is that a 3-5% rental increase is fair. You may want to reconsider even that small amount if your rate is already above the market average.
Explain to your tenants why it's increasing. Give examples of what you'll use the money for, such as:
- Maintenance
- Taxes
- Insurance
- Property upgrades or amenities
Incentivize
Many businesses offer reward programs for repeated shopping to keep their best customers. It's also one of the best lease renewal strategies to help you keep your best tenants.
Give them perks that make them want to stay in your property. These may include:
- Rental discounts, credits, or free months
- Gift cards
- Free upgrades
- Holiday or birthday cards
These small gestures are an easy way to make your tenant feel valued.
Keep Up With Maintenance
Rental property maintenance keeps your property safe, compliant, and profitable. It's also key to retaining tenants.
Be as proactive as you can. Fix small leaks before they become floods. Call for exterminators before a unit has a full-on pest infestation.
Maintenance for aesthetic appeal is also important. Landscaping or new paint makes the property feel new and can encourage a tenant to sign a new lease.
Address Complaints and Gather Feedback
Establish clear landlord-tenant communication from the beginning. Let them know how and when they can reach you.
Make them feel comfortable enough to bring their complaints to you. Get feedback about problems they're having or if there's a rental property upgrade they'd like to see.
Act on their feedback as soon as possible. They'll feel like a valued community member instead of an ATM to dispense rental income.
Who Can Help Me Get More Lease Renewals?
Strategies to increase lease renewals include using technology, taking care with rent increases, offering incentives, keeping up with property maintenance, and addressing your tenants' needs.
PMI Orange County is a full-service real estate asset management company. Our experienced team is always available for top-quality marketing, tenant screening, rent collection, maintenance, accounting, legal help, and more. Get a free rental analysis to see how we can maximize your property's profitability today.
