About two-thirds of renters are interested in renewing their leases. Failing to secure a renewal could leave units vacant for 32 days. You'll lose over a month's worth of rental income!
Instead of watching your best tenants move out, learn how to encourage lease renewals in Houston, TX. Read on for the tenant retention strategies you need to ensure your success!
Be Proactive
Don't wait for tenants to come to you. Many may not realize renewing their lease is an option. Instead, be proactive.
When a tenant's lease is 90 days from lapsing, send a reminder. Ask them if they're interested in renewing their lease.
Set a deadline. If tenants decide not to renew, you'll still have time to market the listing. Otherwise, it could sit vacant.
Build Better Relationships
Foster strong tenant-landlord relationships each time new renters move in. Use property management software to streamline communications.
Don't wait for tenants to ask you for help. Instead, remind them that you're available to answer their questions. Consider sending birthday or holiday messages.
Communicating with tenants will show them you care about their needs and living experience. If you're unresponsive, they may decide to move out. They'll look for a landlord who puts more effort into meeting their needs.
Offer Incentives
Encourage renters to stay by offering incentives. For example:
- One month off rent
- Gift cards to local stores and restaurants
- Property upgrades
Upgrades can include energy-efficient windows, new floors, or smart home technology. Talk to your renters. Ask what they want and try to meet their needs.
Don't Increase Rates
Your current tenants won't choose to renew their leases if the rental rate increase is extreme. Complete a rental valuation before increasing rates.
You're more likely to retain tenants if you remain willing to negotiate. About 25% of renters are managing to negotiate lower prices. Only 28% tried to negotiate when their lease was up for renewal.
Some renters may want a more flexible leasing option. You can offer two-year, one-year, or monthly rental leases.
Negotiating with renters will show them you care about their best interests. Remain patient and professional.
Complete Maintenance
Don't delay completing maintenance. Routine inspections will ensure your properties stay in the best possible shape. If they're crumbling, renters won't want to stay.
Hire a Property Management Company
Get the best landlord advice from an experienced team. Consult a property management company. Their tenant retention strategies will help you keep great tenants you know and trust.
Look for property managers that offer tenant screening services. You can select applicants you'll want to retain long-term.
Increase Lease Renewals in Houston, TX
Encouraging lease renewals in Houston will help your occupancy rate rise. As you fill vacant units, you'll generate more rental income. Use this landlord advice to encourage your best renters to stay for another term!
Remember, you don't have to develop a lease management strategy alone. Instead, partner with an experienced property management company.
PMI Fine Properties has 20 years of experience helping property owners maximize their profitability. We use state-of-the-art technology to ensure each client's success. Contact us to improve your tenant retention rate.
