How to Get Tenants to Renew Leases
When it comes to managing rental properties, deciding whether to extend the lease for an existing tenant or not is something you should pay special attention to. If you have an excellent tenant, who paid rent on time throughout the year, the decision may seem obvious.
Good tenants are hard to find. Having someone who communicates maintenance issues in the property, and treats it as his own definitely makes things a little easier for landlords.
Each year, 54% of the apartment’s turnover to new tenants, which can be a huge pain to deal with for landlords.
Having to find a new tenant to avoid vacancy costs and the natural wear and tear of the property is one of the biggest concerns for homeowners and landlords. Most lease contracts include a clause that gives tenants anywhere from 30 to 90 days to provide written notice to the landlord, whether they’re planning to renew the lease or to vacate the property.
Happy tenants are more likely to renew their lease, so, in order to learn how to incentivize them to renew, here are some tips that will save you the time and hassle of looking for new tenants.
Establish a good relationship with your tenants
Building a strong relationship with reliable tenants can go a long way for both ends. Communication should be easy between the two parties. If you reply on time to a conversation initiated by the tenants, chances are they will be likely to return the favor. Answer the phone, return their calls and reply to messages within 12-24 hours. You should also let them know exactly how (text message, call, email) and when (time and days) they can contact you, should they need to.
Make it easy for them to pay rent, offer more than one option to collect rent money. Inform tenants of rules of the building, nearby supermarkets and places to eat. Agree on sending notifications before rent is due to confirm details of the transaction.
Just like you, tenants want to deal with friendly, respectful, and responsive people.
Address tenants’ concerns
Whether it be a leak in the kitchen or a broken lock, if your tenant raises a legitimate complaint, addressing the situation will make your tenant happier and more likely to be straightforward regarding maintenance issues in the property.
Consider the tenant’s point of view and handle the situation in a timely manner. There will be certain situations that will have to be addressed as soon as they are notified to the landlord while others can wait a couple of days.
Security or safety hazards such a gas leak or a broken lock are expected to be taken care of almost immediately, and doing so will strengthen your tenant’s trust in you, which in turn, will create a professional relationship.
Tenants will be much more likely to leave your property if they feel that their legitimate claims are being ignored by the landlord. Make sure that you are communicating effectively with them, and that you are addressing their inquiries and complaints accordingly.
Upgrades will help your tenant understand increased rates in a renewal contract. Although tenants do not expect all landlords to make cosmetic and practical upgrades on the property. If you plan to keep a tenant for a long time, you should probably consider listening to your tenant’s opinions on what they think should be upgraded in the apartment or house. Since they are the ones living at the property, they might have a sharper eye on the situation than the landlord himself.
If your tenant sees your willingness and efforts to make his life easier, he will make yours easier as well in return.
Filed under: Landlord & Property Management