The rental vacancy rate in the US has increased to 6.1% in 2023! Without the right lease renewal strategies in place, you'll start losing renters. As your vacancy rate increases, you'll start losing revenue.
Before that happens, use these tips to boost tenant retention. Retaining quality, reliable tenants can save you time and money. You can avoid the stress of searching for new tenants, too.
Discover new ways to keep tenants happy today!
Advance Tenant Retention
You won't want bad tenants to renew their leases. Before applying these tenant retention strategies, make sure you're finding ideal tenants.
First, research other rental properties in Blue Springs, Missouri. Offer a fair rental price while considering your ROI. A competitive price can help you attract more potential tenants.
Once you've attracted ideal tenants, conduct thorough tenant screenings. Screening tenants can help you avoid renters who will:
- Damage the property
- Upset neighbors
- Pay rent on time
A thorough screening process should include financial statements, background checks, and credit checks. Follow The Fair Housing Act to avoid discriminating against potential tenants.
Foster Good Tenant Relations
Fostering good tenant relations could encourage tenants to renew their lease. They'll want to stay if they see you as a kind, fair, and responsive landlord.
Give tenants multiple ways to reach you if they have concerns or questions. Use an online tenant portal to facilitate easy rent payments. Outline how you want tenants to submit maintenance requests when they move in.
When speaking to tenants, remain patient and professional. If they have concerns, try to find a solution quickly. Show them you care about their living experience.
Don't take too long to complete maintenance requests. If you delay, you could upset your renters. They could withhold rent or exercise their right to complete repairs themselves and deduct the cost from the rent.
Try to go above and beyond by offering additional maintenance services. For example, you can schedule grounds maintenance and pest treatments.
Ongoing maintenance will increase tenant satisfaction, which could boost your tenant retention rate. It can also improve the property's longevity. You'll have an easier time attracting new tenants if the unit is well-maintained.
Offer Favorable Lease Terms
Give tenants a 90-day notice when their lease is about to end. Giving them advanced notice will allow them to consider their options. If they decide not to renew their lease, you'll have time to market the unit.
Try offering favorable lease terms based on the tenant's interests. For example, they may want to sign a two-year lease.
You can offer incentives to encourage lease renewals, including:
- Discounting one month's rent
- Property upgrades
- Small cash bonuses
- Gift cards to local restaurants
Making a few small upgrades to the unit could make it more appealing to future renters.
Use the Best Lease Renewal Strategies
Happy tenants are more likely to stay longer, allowing you to generate more revenue long-term. Use these lease renewal strategies to boost tenant satisfaction. Otherwise, hire a property management company.
The best property manager can improve your tenant retention rate!
PMI KC Metro can help you achieve your investment goals. Contact us to learn more about our tenant retention strategies!