Were you aware that over one-third of Americans rent their homes?
With so many rental properties out there to meet this demand, it can be difficult to get tenants through the door. If you don't run your business well, then making them stay is even harder.
Knowing how to handle lease renewals will work wonders for your turnover rate. Do you want to improve your current strategy? Read on for our expert advice that will ensure your success.
Increase Rent the Fair Way
Owning property isn't cheap since there's a wide variety of expenses that you have to cover. The cost of living also never stops rising due to inflation. With this in mind, you'll need to be careful when you determine how much you want to increase rent.
Going too low will cut into your profits while raising it too much will drive everyone away. You'll end up spending more on tenant screening, marketing, vacancies, and other bills when tenants don't renew.
Consider Offering Incentives to Existing Tenants
New tenants don't have a hard time finding rental properties that offer incentives to draw them in. It's good to reduce the amount of time your rental unit is vacant, but it's better to avoid vacancies altogether.
This is why existing tenants deserve to have access to cool perks as well. Offering incentives is never necessary, but you'll get good results when you find little ways to show your tenants that you appreciate their business.
Pay Attention to Dates
It's common courtesy to send your tenant a reminder when their lease is going to expire. Life can be hectic, so it's nice to get helpful reminders.
As a general rule of thumb, you should strive to send out reminders 90 days in advance. You should be clear about when your tenant needs to make a decision so you'll also have time to start marketing if they don't want to renew. Getting a response 60 days out is ideal, but some property owners are fine with 30 days.
Make Renewing a Lease Easy for Your Tenants
One of the latest trends is online lease renewal. This saves property owners and renters valuable time by avoiding a formal in-person appointment.
When it's easy to renew a lease, tenants are more likely to continue going with the flow and renting with you.
Work With a Rental Property Management Company
Are you worried about getting anything wrong with your lease renewal strategy? If you want to take the stress out of this task, then you should hire a property management company.
In addition to lease renewals, they can handle any other job that you don't enjoy doing.
Now You Can Master Lease Renewals
Lease renewals don't have to be a tricky affair. After reading this article, you have everything you need to simplify your process.
Do you own rental property in Miami, Florida? Contact us to learn more about our top-notch property management services.