In 2022, roughly two-thirds of renters renewed their leases. In addition, rentals only went an average of 32 days without a tenant. Over 95% of apartments were occupied throughout the year.
If you've been a landlord for a while, then you know lease renewals are important for generating consistent income. It allows you to bypass the process of marketing your property and finding a new tenant. You'll also rest easier knowing you're keeping someone who has worked out for you and your investment.
Here's how to get a tenant to renew a lease and maximize your profits.
Improve Tenant Relations
One of the most important parts of being a landlord is maintaining a healthy relationship with your tenants. That means prioritizing good communication and checking in with them regularly.
The reason you want to do this is because landlords tend to have a bad reputation with renters. You want to show them you care about their comfort and care about them as more than just a steady source of income.
While a property manager can check in with your tenants, it also helps if you stay in touch for more personal matters.
Maintain and Improve Your Property
It's the landlord's responsibility to keep their property in good condition and provide regular maintenance for their tenants. That includes dealing with emergency repairs and any other concerns.
If you want to reduce your vacancy rate, you may also want to consider making upgrades to your property. These upgrades could range from increased security to enhancing tenant comfort levels.
You can rely on property management services to perform regular maintenance, but it'll be up to you to schedule any upgrades or changes to your property.
Offer Incentives
A good way to earn a lease renewal is to offer incentives. These may include renewal bonuses or flexible lease agreement terms. Some tenants may feel more comfortable signing a shorter lease than agreeing to an entire year.
Another way to earn their favor is through referral programs. For example, you could offer rent discounts if their referrals sign a lease.
Address Tenant Needs
Recognize the diverse needs of different types of tenants, including families and those with disabilities. Tailor your services and amenities to match those needs.
For example, disabled renters can make home modifications using their own income. However, landlords can earn more attention from current and future tenants by providing more accessibility throughout their properties. This could take the form of something as simple as adding a ramp or more handicapped parking.
Earn More Lease Renewals
The key to getting more lease renewals is by staying in contact with your tenants and providing for them. That may take the form of renewal incentives, property upgrades, and even specific changes to match their individual needs.
PMI Mission Viejo provides property management services in the Mission Viejo area. Our office is part of a nearly 20-year-old franchise focused on serving landlords across the country. Reach out today with any questions or concerns, and get your free rental analysis.
