How to Get Tenants to Renew Their Leases: Tips for Landlords
As a landlord, you’re already well aware of the value of quality tenants. Your favorite tenants are the ones who pay their rent on time, keep their units maintained, and make your life easier. Unfortunately, retaining your best tenants isn’t always easy. By following a few practical tips, however, you’ll be better prepared to make your tenants a lease-renewal offer they can’t refuse.
Offer Renewal Incentives
There are plenty of incentives you can offer to your tenants to help them feel valued and encourage them to sign a lease renewal. Some landlords, for example, may offer tenants a month of free rent or a discount on their monthly rent when they sign a new lease. If offering free rent is a little too steep, you might even consider something as inexpensive as offering a restaurant gift card or gift certificate with every lease renewal.
Another option to consider is to offer a free upgrade for renewing clients. Installing a new kitchen backsplash or throwing in an upgraded appliance (like a refrigerator) can go a long way in encouraging renewals. Meanwhile, these improvements add value to your investment property when you eventually do need to find new tenants down the road.
Take Action on Tenant Feedback
When tenants provide you with feedback on repairs that need to be made or changes that would make renting with you more enjoyable, take it seriously. Listening to your tenants’ feedback can go a long way in making them feel valued, which in-turn may make them more likely to stick around for another lease term.
On a related note, make sure your tenants also know how to best reach you (or your maintenance staff) when issues arise.
Don’t Wait Until the Last Minute
While it may seem sensible to wait until a month or two before a tenant’s lease expires to start talking about renewal, the reality is that their decision has likely already been made at this point. By approaching tenants about renewal earlier in the process, you give yourself more of an opportunity to convince them to renew.
Rather than waiting until the last minute to start talking about lease renewals with your tenants, then, consider approaching them halfway through their lease. This can serve as a valuable opportunity to see how they’re enjoying their rental while also giving you a better feel for whether they’ll be renewing (or if they may need some additional encouragement).
How a Property Management Company Can Help
If all these efforts seem time-consuming or overwhelming, it’s because they can be. Retaining great tenants takes a lot of work, which is why many landlords choose to work with a property management company. An experienced property manager will have plenty of experience working with tenants and retaining them in Tucson rentals, which can save you a lot of valuable time and resources.
At Bancroft & Associates, we’re here to help with every aspect of maintaining your Tucson property. Contact us today to find out more about our services!