American renters move about once every five years on average. Some prefer to move every year, but moving can be a huge hassle. If staying is easier, many tenants prefer to stay in place.
If you're a landlord struggling to retain good tenants, it's time to work on your lease renewal strategies. You can keep those great tenants with a bit of work!
Not sure how? Let's talk about it. Read on to learn more.
When you have a tenant that you know you want to keep around, you want to communicate that to them as early as possible. Give them time to think about what you're offering.
A lease renewal is an offer. You're offering them a renewal at a certain rental price for a certain lease term. They get to consider whether or not that's an acceptable offer.
They may have other plans. They may have plans to leave the area, move in with a friend or partner, or even buy a home. By communicating early, you're letting them consider your offer first and giving yourself more time to plan if they tell you that they won't be renewing.
Keep Rent Increases Reasonable
It's not uncommon for landlords to increase rent prices every year, but you should reconsider. If a tenant can find other properties in Rockville, especially within the same neighborhood, for a lower price, they won't be renewing a lease with you.
If you must increase the rent because your own costs have risen, keep it reasonable. After all, one of the top reasons that tenants move is that they can't afford the rent.
It's better to have a slightly lower rental income from a full property than a high vacancy rate.
Consider Small Perks
What can you offer your tenants to sweeten the deal and make them more likely to renew their lease? Consider adding in a few perks if they choose to renew.
This could be something like half off of the first month's rent, a perk that's often given to new tenants, but rarely current ones. If you like your tenants, why not extend the perk to them?
You could offer a small Visa gift card or a gift card for a local business. You could also offer a home service, such as a free one-time cleaning service. This is a great one because it helps your tenants and it keeps your property in better condition.
Be Open to Negotiation
Tenants are allowed to negotiate lease terms. If your tenants want to negotiate, stay open to it. You may have to stay flexible on your lease duration or rent if you want to retain your tenants.
If you're open to negotiation, it's likely that you'll reach an agreement that you're all happy with.
Try These Lease Renewal Strategies
These lease renewal strategies can help you retain your favorite tenants so you can lower your vacancy rates. Keep your tenants happy and they'll keep you happy!
Are you looking for help with your property in Rockville, MD? At PMI Potomac, our property management experts are ready to make your life as a landlord easier. We can customize our services to suit your individual needs.
Schedule a consult so we can start working together today.