Many new property owners don't realize all the costs that can go into managing a rental property, such as:
- Taxes on the building
- Utilities, especially during vacancies
Tenant turnover can also be a major drain on your finances, with each search for a new resident costing an average of a few thousand dollars.
At this rate, successfully securing lease renewals from your existing residents can save you tens of thousands of dollars each year. Keep reading for three strategies you can use to entice your tenants to rent from you for years on end.
1. Offer Flexibility in Your Lease Renewals
When managing tenants, flexibility is vital. It's a great way to maintain a competitive edge over the other property management companies in your market while meeting the needs of your renters at the same time.
If you can, offer flexible lease terms when presenting the option of renewal to your residents. These can include:
- Short-term renewals, such as a 4-month or 6-month lease
- Long-term renewals, such as a 24-month lease
- Month-to-month leasing, for either a short-term or long-term basis
In addition to flexibility on lease timelines, consider providing options for your current residents to move into other units on your property as vacancies arise. A tenant may be more inclined to stay if they have the option to move into a larger unit or a unit with different amenities.
2. Build Rapport Long-Term
A happy tenant equals a long-term tenant, so your lease renewal strategy needs to invest at least in part in helping your residents to feel content with the property that you're providing to them and the management of that property.
When a new tenant first moves into your rental property, check in with them to ensure they have everything they need. Within the first few weeks, connect with them again to make sure that everything is going well.
Be responsive to the needs of your tenant throughout their lease; resolve all maintenance requests quickly and thoroughly. Also, make proactive updates to your property, both in common spaces and in individual units.
When appropriate, find ways to foster community among your residents. Put together community gathering nights and provide spaces for them to organize their own events.
Make yourself available to the community so that they can provide you with feedback about your property.
3. Know Your Market
Before entering into the lease renewal conversation with a tenant, get up-to-date on the market trends in your area. Align your new asking price with the average rent in your area.
If there's a high vacancy rate in your area at the time of the renewal, consider offering a flat rate on the renewal or throwing other perks into the deal; any cost will be worth avoiding having to search for a new tenant in such a market.
Tenant Management Made Easy
Lease renewals can be stressful for all parties, but if you follow these strategies, you're likely to have your tenants maintaining residence on your property year after year.
Managing tenants is just a piece of property management, and the task can quickly get overwhelming. At Nashville Property Management, we want to help you manage your rental property and get as much return on your investment as possible.
Want to learn more? Check out our free rental analysis tool today to get started!