The rental vacancy rate in the US increased between 2022 and 2023, reaching 6.1%. If you're struggling with tenant retention, you won't generate revenue from your properties. You need to keep tenants happy to avoid vacancies.
With these lease renewal strategies, you can retain great tenants. The best tenants will protect your property, allowing you to avoid high maintenance expenses.
Generate more income from your property by boosting lease renewals with these tips!
As a property owner, you're likely busy responding to calls, investing in new properties, and scheduling maintenance requests. Sometimes, tenant inquiries fall through the cracks. Your tenant retention rate could suffer if you're not responsive.
Try to respond promptly when you receive communications from your tenants. Be honest, patient, and straightforward.
Give tenants more than one way to reach you. For example, you can use:
- An online tenant portal
- In-person meetings
- Text messages
- Phone calls
When tenants sign their lease, go over the best ways they can communicate with you.
If you're too busy to respond to inquiries, hire a property manager and become a hands-free landlord. They'll respond to these messages on your behalf. Quick responses will show tenants that you care about their needs.
The longer they wait to hear from you, the more likely they'll grow frustrated. When it's time to renew their lease, they might turn to other properties instead.
Keep your property in the best possible condition. Respond quickly when tenants submit a maintenance request. Ongoing maintenance can boost tenant satisfaction and retention rates.
Responding quickly to maintenance requests will show tenants you care about the property and the people living or working there. Try to go above and beyond with:
- Pest treatments
- Grounds maintenance
- Filter replacements
Making ongoing repairs can also improve the property's condition and longevity. You won't have to pay for bigger renovation projects if it's maintained. If you ignore these requests, your tenants could take legal action.
Encourage tenants to stay by offering incentives. For example, you can offer:
- Gift cards to local restaurants/shops
- Small cash bonuses
- Property upgrades
Upgrades can include new flooring, paint or window treatments, or new appliances. These incentives can help show tenants you care while allowing you to create their ideal rental.
Adjust Rent Prices
Work with your property manager to research local rent prices for a residential or commercial property similar to yours. Avoid being too aggressive when increasing the rent. Otherwise, your tenants might leave.
Instead, try to keep the rent a little below market. Only increase the rent every one to three renewal periods.
As you begin using these strategies, try to remain flexible. Talk to your tenants about what they consider when renewing a lease. Remaining flexible could help you find a solution that's ideal for both parties.
Try These Lease Renewal Strategies Today
Using the right lease renewal strategies will help you generate more revenue. Use these tips to keep tenants happy. Otherwise, consult your property manager.
Need help encouraging great tenants to stay? PMI El Paso is dedicated to maximizing owner profitability. We're here to support you!
Contact us to discuss your tenant retention strategy.