The goal of every property manager is to keep good tenants by persuading them to renew their leases. Renewals allow the owner to achieve a continual flow of income, as the property is always inhabited and there is no need to spend the time and money on searching for a new occupant. So, what is the best way to keep a tenant in your property? In this article, we list the top reasons why a tenant would want to resign a lease.
Communication and kindness go a long way when it comes to a good property manager and renter relationship. Tenants are more likely to stay at a place they feel welcome, so property managers should be encouraged to greet tenants warmly, and talk to them with attention and respect. Tenants also appreciate quick responses to situations, whether it be a major maintenance issue, or simply a question about the lease. Landlords should then be willing to respond to calls promptly, as well as conduct regular maintenance to ensure the tenants can live in the property as comfortably as possible.
Everyone enjoys a special offer, so offering incentives is another reason why tenants might want to renew. These incentives allow the renter to confirm that they are making the right choice to stay by offering an increase in value by means of a gift. Incentives can also make the tenant feel wanted, almost as if the property manager is “begging” them to stay. As a result, property managers are encouraged to offer some form of motivation for renewing a lease. Incentives can be big or small, ranging from a free month of rent to a gift certificate for renewal.
The phrase, “Keeping up with the Joneses,” can definitely apply to the technology and appliances in rental properties. Tenants can become frustrated if they find their washer/dryer unit is less than subpar in its mature age, or if the refrigerator makes an obnoxious noise while running. One way to keep tenants satisfied is by upgrading appliances to meet their standards. While this can be a hefty investment, it may just be worth it when trying to retain a good tenant for the long-term. It is important to note that when taking suggestions for improvements to the property, a landlord should never make promises to fulfill them unless it is intended to be written in the contract.
Before a tenant decides between renewing the lease or finding a new property, the most common and extensive research they conduct is on the prices of neighboring properties. Tenants want to get the best value out of the property as possible, so property managers should take their tenant’s value of amenities and location into consideration when revisiting rental prices. The most effective way to handle rent when wanting a lease renewal is to keep it the same price. However, in a shifting economy, it may be necessary to adjust rent prices. In these situations, always keep the competing prices and offerings on the market in mind to stay one step ahead of rival properties.
There are many reasons why a property manager should want a good tenant to renew a lease, but persuading a tenant to renew can be tricky when competing properties exist. We hope to make this process easier by listing the common reasons tenants renew, and giving you suggestions on how to use them to your advantage as a property manager.