How many of your existing tenants have renewed their leases for another year, or even two? If the answer is "none," you may want to reevaluate your lease renewal strategies. Increasing lease renewals is an easy way to maximize your occupancy rate and boost your ROI.
Unfortunately, the rental vacancy rate in the US has already increased to 6.1%. Your rental properties could sit vacant if you don't generate renewals. Read on to discover how to encourage tenants to renew today!
Send a Lease Renewal Letter
Start your retention efforts early on in the leasing cycle. When new tenants move in, provide multiple ways to reach you. A strong landlord-tenant relationship could encourage renewals.
If tenants like and respect you as their landlord, they could be more inclined to stay another year. When responding to tenant inquiries, remain honest, professional, and patient. Show tenants that you care about their needs and the problems they're facing.
Try to respond to maintenance requests quickly. Keeping up with maintenance will allow you to protect your investment properties.
It will also show tenants you care. Otherwise, tenants may get frustrated or take legal action.
Send tenants a lease renewal letter 90 days before their lease ends. Give them time to review their options. A 90-day notice will give you the chance to market the listing if tenants decide to leave.
Gather Feedback
Remember, happy tenants are more likely to renew their leases. Ask your existing tenants for feedback about their living experiences. Listen to the problems they're facing and try to find solutions.
Acting on the feedback you receive will show tenants you care about their living experiences. They'll be more inclined to stay knowing you're a compassionate landlord.
If you need help gathering and acting on resident feedback, work with a property management company. They can respond to tenant inquiries on your behalf.
Offer Incentives
Consider making strategic upgrades to your rental properties. Choose upgrades that will increase the property value. For example:
- Rooftop gardens
- Storage space
- Bicycle repair stations
- Doggy daycares
- Pools
If you're struggling to come up with ideas, remember to talk to your tenants! You can also offer incentives to encourage them to renew their leases. Consider offering a gift card at a local shop or a month off the tenant's rent when they renew.
Provide Flexible Lease Options
Instead of only offering a one-year lease, consider offering flexible lease options. Your tenants may prefer to rent on a monthly basis. Some renters may want the security of a two-year lease.
Remaining flexible will allow you to find compromises with your renters. You could have an easier time increasing renewals.
Increase Lease Renewals in Phoenix
Increasing lease renewals will help you maximize your occupancy rate. Use these lease renewal strategies to get started. Otherwise, consider working with an experienced property management company.
Not sure who to hire? Contact the team at Real Property Management Phoenix Valley. We have over 25 years of experience managing over 2,000 properties.
We can help you navigate the intricacies of property management. Contact us today to discover how we can increase your lease renewals!
