As your renters reach the end of their lease, what strategies do you have in place to help them feel confident about renewing? With the housing market making its slow but steady way back to what it used to be, there is more urgency than ever to keeping your rental properties occupied and your renters happy. This can sometimes be tough to do if you don’t have a plan in place. One thing is for sure, you do not want to wait until the very end of the lease to find out if that your renter is reluctant to renew.
Here are 5 strategies to help overcome lease renewal reluctance:
- Stay in Good Contact
It’s important to stay in good contact with your renters throughout their lease. This starts before they ever move in. Call them before they move in, right after they move in and on a consistent basis after that. The more contact you have, the better relationship you will establish and the more comfortable they will feel. This allows you to hear any complaints they might have so you can address them right away.
- Reward With Security Deposit
This strategy works especially well when you have renters who have consistently paid rent on time and has demonstrated that they are responsible. Let them know that if they renew, you will return their initial security deposit in installments over the next 6 months to a year. Knowing that they have that money coming back to them is a great incentive to resign their lease.
- Be Sure to Highlight Property Features
Renters are more likely to stay put once they realize how good they have it already. It never hurts to point out some of the extra features that your property has (garage, pool, close to freeway) to remind your renters why they chose your property in the first place.
- It’s All About the Rent
When it comes down to it, renters are always looking for the most cost-effective choice. Traditional renewals typically include a hike in the rent. In fact, it may have been your strategy to get your renters in for the first year at a discounted rent, with the plan to raise it when they renew. If you are concerned with keeping your property occupied, it may be wise to forego the rent increase. Renters who know they can stay for another year at the same rent, and can save moving expenses at the same time are much more likely to stay put.
- Ask Early
Do not wait until 30 days before the lease expires to approach your renter about renewing. You might consider bringing it up as early as 6 halfway through the current lease, right at that moment when they are feeling settled in and the thought of moving hasn’t even entered their minds. Offer some kind of incentive for renewing in advance.
RPM East Valley has a proven track record when it comes to helping renters renew their lease. Call us if you have any other questions or concerns about renewal reluctance. 480-719-1243.