Sick and tired of tenant turnover? You could lose thousands of dollars every month if your tenants do not renew the lease, which could have a significant impact on your financial wellbeing.
Landlords will want to do all that they can to get tenants to renew their lease agreement otherwise they will have to spend time and money trying to find new tenants for their rental property. Additionally, it is always tough seeing reliable tenants go and there will always be a risk when bringing in someone new.
So, what can you do to get tenants to renew their rental agreement?
Freeze the Rent
Perhaps the most effective step to encourage lease renewal is to freeze the rent. Many landlords push up the rent each year, but this is a fast way to drive tenants away. This is particularly true in the California Bay Area with rent already being high and the cost of living increasing.
Freezing the rent might not seem like the best financial decision, but increasing the rent will not do much good if it takes a month or longer to find new tenants. Freezing the rent will encourage tenants to renew the lease and create a stronger relationship.
Improve the Property & Keep Up With Maintenance
If you want tenants to renew the lease, you need to make sure that your rental property is a good place to live. You can do this by making periodic upgrades to the property during the rental agreement and by keeping up with maintenance.
You might find it helpful to ask them for any ideas for ways to improve the property and what problems they face. You should also allow them to make the space their own, such as permitting them to put up pictures on the walls. This will help you to create a better living space as well as create a stronger connection.
Use a Property Management Company
Using a property management company is also one of the best ways to encourage tenants to renew their lease. This is because a property management company will be able to handle any issues in a swift and professional manner.
Tenants want to know that any repairs, concerns, and problems will be dealt with as quickly as possible. A property management company will be able to handle all problems that arise while taking the stress out of property management for the landlord.
Start Renewal Conversations Early
It is helpful to bring up the topic of a lease renewal well in advance of the end of the tenancy agreement. This is so that you can find out what you can do to get them to renew the lease and gauge if this is something that they are considering.
If they are committed to leaving, this will also give you enough time to start the search for a new tenant to cut down on vacancy time.
Get Your Tenants to Renew the Lease With These Tips
Hopefully, you can use the information in this post to encourage your tenants to renew their lease. Tenant turnover can be frustrating and costly, so you will want to keep hold of your best tenants for your rental property.
Interested? Get in touch today to discover how we can help to manage your property and prevent tenant turnover.