At the beginning of 2023, the rental vacancy rate in the US reached 6.4%. Your vacancy rate could increase if you're not prioritizing lease renewals. As your tenant retention rate improves, your occupancy rate and ROI will as well.
Not sure how to encourage tenants to consider renewing a lease? Read on for the strategies you need to ensure your success. Generate more income with these renewal strategies!
Prioritize Communication
Start developing relationships with tenants the moment they move in. Tenants will feel well cared for and valued. As their tenant satisfaction rate improves, they'll be more likely to renew their lease.
Talk to your tenants regularly. Ask if there's any way you can provide additional help.
Provide tenants with more than one way to reach out. Consider using a tenant portal to consolidate conversations. If you're struggling to keep up with requests, hire a property management company.
Use the feedback you gather to make improvements to how you operate. For example, some tenants may note maintenance requests take too long. Others may ask for longer lease renewal periods.
Consider Your Rental Pricing
Instead of increasing your rental pricing, consider flat renewals. If you increase a tenant's rental rate, they could leave because they can't afford it. As your vacancy rate increases, you'll lose money.
Don't deny renters when they negotiate for a lower rate. About one in four renters are successfully negotiating lower rent prices. Even a small decrease could encourage renters to renew.
Before determining your new rental pricing, consult a property management company. They'll complete a market analysis to ensure you set ideal prices based on current trends.
Extend Lease Renewal Periods
Provide flexible lease renewal periods to meet the needs of your tenants. Some renters may prefer a monthly option on a two-year lease agreement.
Remaining flexible can further improve tenant satisfaction rates. Remain willing to negotiate to find an option that works for everyone.
Complete Property Maintenance
Delays in completing property maintenance projects can upset renters. They'll choose a landlord who cares about their living experience. If the property deteriorates, you'll also struggle to attract new renters.
Hire a property management company that can complete maintenance projects in a timely manner. If a unit is vacant, consider making upgrades that boost the property value. Offering new property amenities could help you find and retain new tenants.
Offer Incentives
Encourage tenants to consider renewing a lease by offering incentives. Upgraded property amenities can include:
- New appliances
- A fresh coat of paint
- Renovated common areas
Otherwise, consider rent discounts, lease term flexibility, or access to a tenant portal.
Encourage Sterling Lease Renewals
Generating more lease renewals in Sterling can boost your ROI. If you're unable to apply these strategies, request property management services. With help from PMI Loudoun, you can improve tenant satisfaction and tenant retention.
We're the top property management company (with the awards to prove it). We can take care of your property maintenance, rental pricing, and more. Contact us today to discover how we can boost your lease renewal rate!
