Every landlord knows the difference between a good tenant and a bad one. Landlords also know the value of excellent tenants.
When you find the best ones, you want to keep them.
Therefore, you may wonder about the best lease renewal strategies. In other words, how do you keep your best tenants and prevent them from moving out?
Continue reading this guide to learn the best strategies for encouraging your tenants to renew their leases.
Provide Excellent Services
A lease agreement generally lasts for one year. However, the goal is to convince every great tenant to stay longer than a year. Renewing a lease locks this in.
Treating them well is one of the best ways to ensure that your great tenants renew. Provide excellent services to your tenants, and this will encourage them to stay.
You can handle the services yourself. Hiring a property manager is the best option. One of the benefits this offers is they provide excellent services, keeping your tenants satisfied.
Property managers address issues quickly and perform routine maintenance. They aim to keep all the tenants happy and comfortable in their units. Happy tenants will be more inclined to renew their leases.
Offer Upgrades or Perks
Offering upgrades and perks is also helpful when learning how to retain tenants. You can do this for residential and commercial properties, as all tenants appreciate these things.
For example, offer to upgrade your tenant's kitchen if they renew their lease. This task might cause them to stay. Keep up with all the maintenance and repairs, keeping the properties nice.
You can even offer other perks. For example, offer a free one-year gym membership to tenants who sign another lease agreement.
Avoid Major Rent Increases
While rent tends to increase year after year, large rental increases turn people off. Your tenants will be more likely to stay if you avoid major rental increases.
Keeping an excellent tenant is more valuable than raising the rent on a bad one. The bad tenant might not even pay the rent or follow the lease agreement.
Keep Open and Early Communication
Finally, you can encourage tenants to renew leases through communication. Keep an open line of communication with your tenants. Remind them early about their lease renewals.
You can do this by creating a tenant portal. A portal gives you access to communications with your tenants. You can send reminders about lease renewals and provide information.
Also, be available to your tenants when they want to talk. This helps them feel valued and may cause them to stay.
Use These Lease Renewal Strategies in Your Business
Bad tenants are a dime a dozen, but great ones are a treasure to keep. Using some of these lease renewal strategies can help you keep the excellent ones. Keeping the good ones helps your business stay successful.
Do you need assistance with your rental properties in the Chattanooga Area?
PMI Chattanooga is a full-service property management company. We are locally owned and operated and aim to provide high-quality services. We can help with this duty and others.
Reach out today to learn more!