You probably know that it costs nearly $4,000 to replace a tenant when they move out if you have a high turnover rate.
Retaining tenants is a vital part of success as a landlord. Without tenant retention, you may fail to be cash flow positive.
If you struggle to keep your tenants, these lease renewal strategies can help you change that. Keep reading to learn the best game plan to implement.
Create a Positive Renting Experience
Tenants who have an exceptional renting experience are more likely to renew their lease. Tenants want to renew when their needs are being met. Always be responsive to tenant concerns and address maintenance problems quickly.
To see if tenants are having good experiences, solicit regular feedback. Quarterly or monthly feedback is a valuable tool for keeping your tenants.
Ask questions regarding rental experience and how they feel about interactions with your team. Collect feedback through online forms and direct conversations.
One of the best lease renewal strategies is to make necessary improvements. Don't just sit on the information you receive, do something about it.
Offering incentives doesn't mean tenants have to renew, but it might make them think otherwise about moving. Consider perks like:
- Free rent payment reporting to credit bureaus
- Reduction in rent
- Waived payment processing fees
You can tailor the incentives to what your tenants prefer. Your budget will also play a role in what incentives you can offer.
Making improvements to the property can act as an incentive as well. Updating kitchen appliances, refreshing paint, and adding desirable features can make your units more appealing.
Offering incentives can cost, but it might be less than tenant turnover costs. When your tenant leaves, you have to pay for tenant screening, property marketing, and move-out cleaning.
Streamline the Lease Renewal Process
Renewing leases doesn't have to be a complicated process. To improve tenant retention, you can streamline the lease renewal process.
Automation makes things easier for tenants and landlords. Using property management software and tenant portals can simplify lease renewals. Tenants can renew their lease electronically with ease.
This efficient process eliminates the need for back-and-forth emails.
If you offer a lease renewal with a rent increase, it's best to communicate this change in advance. Tenants won't be surprised about the increase when you send a lease renewal offer if you tell them ahead of time.
Tenants can express their concerns about the increase and negotiate prices if you allow it. The more flexible you are in your approach, the better your chances of lease renewal.
Lease Renewal Strategies That Work
Retaining valuable tenants at your Ohio rental property is easier with these lease renewal strategies.
The best way to keep tenants is by hiring a full-service property management company that can help. A professional property manager at PMI Gatekeeper Realty Services can implement these strategies with ease.
We have over 20 years of property management experience to provide landlords with the services they need. To start getting more lease renewals and avoid high tenant turnover, contact us today.