Almost two-thirds of renters say they're satisfied with their current renting situation. Almost three-quarters say it lets them live in a neighborhood they couldn't otherwise afford.
That's positive news for landlords because keeping a tenant is easier than finding a new one. Everyone benefits if they stay stasfied and renew their lease.
Read on to learn four strategies to master lease renewals in Orange Beach, AL.
1. Communicate Clearly and Early
Set up open lines of communication with your tenants. It'll foster a positive landlord-tenant relationship based on trust.
Begin the lease renewal process as soon as possible. Send them a lease renewal letter at least 60-90 days before their lease expires.
This gives you more time to negotiate terms, complete paperwork, and address concerns. Be flexible and create clauses that allow for lease agreement updates or modifications if necessary.
The ESIGN or Electronic Signature in Global and National Commerce Act means digital lease signatures are also perfectly legal. Provide a digital lease to e-sign instead of a hard copy for tenants who want it. They're more likely to renew because the process is easier.
2. Research the Market
Research the local market before you decide on your lease terms. Look into the supply and demand for similar rental properties in the area. Check how the neighborhood is growing.
This information is important for negotiation during the negotiation portion of lease renewals. It lets you show why your property is worth staying in.
It's especially important if you're considering raising the rent. Keep your rates no more than 3-5% above the market average. Explain why the price is going up, whether it's to cover:
- Maintenance
- Taxes
- Insurance
- Amenities
3. Focus on Improving the Experience
One of the simplest tenant retention tips is to make your property a place your tenants enjoy being in.
Handle all their maintenance requests quickly. What makes a property seem less attractive than a dripping sink or pest problem that the landlord hasn't attended to for weeks?
Show that you value new arrivals by giving them care packages when they move in. Create a sense of community between your tenants by hosting resident events.
Perform strategic capital improvements. These small upgrades can have a major impact on tenant satisfaction.
4. Offer Incentives
Have you ever heard of putting a carrot on the end of a stick to get a horse to run? This idea is also one of the best lease renewal strategies.
Offer tenants an incentive to stay. These may include:
- Rental rate discounts or locks
- Upgraded appliances or amenities
- Flexible lease terms
This doesn't have to be a one-time thing. You can also provide continual incentives throughout the year such as gift cards around the holidays or their birthday.
Get Professional Help With Lease Renewals
Encourage lease renewals by communicating clearly, researching market conditions, improving resident experiences, and offering incentives.
PMI Integrity Properties provides full-service property management. We use state-of-the-art technology to let you keep an eye on your investment at all times.
We can help you increase the value of your asset over time and help it grow by setting the highest possible rent every month. Contact us to maximize your profitability today.
