Imagine filling your investment properties with lovely tenants who are respectful, pay on time, and cause zero problems. What if they all packed up and left? You'll have to waste time and money marketing, screening, and filling vacancies.
Otherwise, a high vacancy rate could cost you millions of dollars. The national rental vacancy rate has recently increased to 6.1%. Instead of losing tenants, focus on lease renewals.
Not sure how to generate renewals in Nashville, TX? Read on for lease renewal strategies that can ensure your success.
Prioritize Tenant Communication
Make sure tenants have an easy way to contact you the moment they move in. If they have an issue, they could get frustrated if you're difficult to reach. Use an online portal to streamline tenant communication.
When a tenant's lease is about to end, send a 90-day notice outlining their renewal options. Give tenants more than one choice, such as a:
- Monthly option
- One-year lease
- Two-year lease
Providing early notice will give tenants the chance to review their options or look at other properties. If they decide not to renew their lease, you'll have time to find new renters.
Remaining flexible will show them you're willing to compromise. You could have an easier time meeting the tenant's needs.
Complete Rental Property Maintenance
Neglecting rental property maintenance could lead to frustrated tenants. Your renters may decide to take legal action or complete repairs on their own. If you have a history of neglecting maintenance, they may decide not to stay.
Work with a property management company. They can find reliable vendors at competitive prices to coordinate maintenance without delay.
Offer a Rental Property Upgrade
Consider offering tenants a rental property upgrade if they decide to renew their lease. For example:
- Finished basements
- Open floor plans
- New appliances
- A deck or patio
- New parking options
- A fresh coat of paint
Choose upgrades that will increase property values. These upgrades can help you attract future renters.
Consider Rent Incentives
Rent incentives could encourage tenants to stay for another year. You can offer:
- A gym membership
- Discounts off rent
- Gift cards to local shops/restaurants
Talk to your tenants! Ask for their feedback to start making improvements. Their feedback could help you recognize an incentive that will encourage renewals.
Reconsider Rent Increases
Austin's rental prices are continuing to fall from record highs. Last year, prices dropped 14%. Your current renters may be more inclined to look elsewhere if you increase their rent.
Instead of rushing to increase the rent, consult a property management company. They can help you make an informed decision using a rent analysis.
Generate More Lease Renewals Today
Don't miss a chance to retain trustworthy tenants. Instead, use these tips to encourage more lease renewals. These lease renewal strategies can boost your occupancy rate and ROI.
You don't have to apply these tips alone. Consult an experienced property management company to ensure your success.
PMI Music City has nearly 20 years of industry experience helping investors maximize their nearing potential. We use state-of-the-art technology and award-winning services to help clients accomplish their goals. Contact us to discuss your lease renewal strategy.
