It may surprise you to learn that typical homes in the US cost around $349,000 as of 2023. For many people, rising home prices have proven to be an amazing investment opportunity.
However, you can't expect to generate the desired rental income if you frequently deal with vacancies. Having a lease renewal strategy will help keep your properties occupied.
We've put together a brief guide on tenant retention that can help you maximize your number of lease renewals. Let's explore what you should know.
It's essential to stay flexible when looking to increase lease renewals. For instance, you could negotiate rates with your tenant if they sign a longer lease.
You could also offer alternative lease terms compared to what you normally would. When you show tenants you're open to working with them, they'll be more likely to stay at your property.
Reach Out to Residents Beforehand
If residents don't hear from you as the lease expiration date approaches, they may assume that renewing isn't an option. Or, they might begin looking at other locations to move to instead of renewing leasing opportunities. Reach out to them a few months before the lease expires and have a conversation about renewal.
This gives them a chance to accept your offer or explain why they chose not to. In the event you can't change their mind, you'll have enough time to find new tenants.
Upgrade the Property
One of the worst mistakes property owners make is neglecting their rental properties. While you don't necessarily have to remodel the entire unit, you should do more than give it a fresh coat of paint every couple of years.
Installing new kitchen hardware, replacing carpet with laminate flooring, etc., can go a long way when it comes to tenant retention. If tenants leave, you might even have trouble attracting new renters if you don't upgrade your property. Consider the money you spend on renovations as an investment into your passive income.
Work with a Property Manager
A property manager can handle your obligations as an owner safely and efficiently. They have the tools and resources to screen tenants, handle maintenance requests, and collect rental payments. This allows you to allocate time toward other responsibilities in your life.
When searching for someone to work with, look at their past reputation and see what other clients have to say. Were they satisfied with the results they got? Did the property manager remain professional throughout the process?
You should also consider their proposed compensation. Property managers take a percentage of rental income, and some want much more than others. With enough research, you can find a property manager who can fit your needs without overstretching your budget.
Prioritize Lease Renewals
Emphasizing lease renewals will go a long way when it comes to minimizing vacancies and maximizing your rental income. The above information will help get you started on the right track toward leveraging your rental properties.
Get in touch with a representative today at PMI Marietta for a free rental analysis. Our professional staff can assess your needs and connect you with the best solution.