According to the Rental Housing Journal, almost two-thirds of renters renewed leases in 2022. This number does not come easily, and landlords need to work hard to drive up their number of lease renewals.
Having existing occupants renew their leases is much easier than finding tenants who are new to the area. When existing tenants continue to occupy your properties, you won't need to worry as much about late rent payments or evictions that may come with newer, less responsible tenants.
To make your real estate investment worth it, you will want to do everything you can to increase lease renewals. Here are a few helpful tips for getting your tenants to sign another lease agreement.
1. Build Positive Relationships With Your Tenants
One of the best ways to boost lease renewals is to keep your renters happy. Make sure you prioritize effective communication, responsiveness to issues, and showing a genuine interest in your tenant's well-being. When your tenants feel valued and respected, they are more likely to consider a lease renewal.
2. Offer Competitive Pricing
Do research to ensure that your rental rates remain competitive in the local market while still providing your tenants with a good deal. It is advisable to avoid significant rent increases. In the first half of 2022, the average percent change in rent was 12.2% for new tenants, but only 3.5% for tenants with a lease renewal.
3. Provide High-Quality Services
A well-maintained property and quick resolution of maintenance issues greatly impact the overall living experience. This will not only make your property more attractive, but it will also demonstrate your commitment to tenant satisfaction.
4. Consider Early Renewal Offers and Incentives
Presenting lease renewal offers a few months in advance of the lease expiration date will show your tenants that you are considerate of their time and planning. You can present early renewal offers that include favorable terms and exclusive discounts.
You can also offer incentives for tenants to renew their leases. These incentives could include one-time rent discounts, new appliances, or small gifts.
5. Offer Flexible Lease Terms
Make sure you are flexible with your lease terms. Consider offering shorter lease options or month-to-month agreements to accommodate a diverse range of tenant preferences.
6. Create a Sense of Community
Creating a sense of community within the property can significantly impact your tenant's willingness to renew their lease. Take the time to organize events and activities that encourage social interaction among tenants that will foster a strong community bond.
7. Ask Your Tenants for Feedback
One of the most valuable ways to increase lease renewals is to gather feedback from tenants through surveys. This information can be used to make improvements and adjustments and also lets your tenants know that their opinion is valued.
Boost Your Lease Renewals With Our Property Management Services
Lease renewals are very attainable if you put in the work to make your tenants feel valued and welcomed in your community. If you need help managing your properties, then get in touch with PMI RGV. PMI RGV is dedicated to providing our clients with excellent customer service by maximizing owner profitability while preserving their investment in real estate.
Contact our team today to learn more about our services.
