Are you the type of landlord that waits until a lease is almost finished before contacting your tenants about a renewal? Or maybe you wonder why you go through so many tenants instead of keeping a few of the good ones? In this article, we’ll go over some ideas for retaining good tenants and how to avoid the lost revenues associated with a vacant property.
Capture Renewals Early
Getting the balance right is key to capturing your tenants for another lease period. This doesn’t mean you should ask six months in advance, but plan your timetable. You don’t want to leave the renewal question too late in case the tenants already have other plans. Around three months before the lease is up is a good time to begin working on the renewal.
Incentives are an excellent way to reward with tenants and secure their business long term. Incentives can include gifts for the flat that the renter may not buy themselves, or a discount on amenities such as the Internet, or electricity. You might even consider offering some cash back on the rent or another perk like a free parking spot.
Upgrade the Property
Ask your tenant what it would take for them to stay. If they choose to not answer that type of question, do not push it. But if you have a friendly relationship with them, you can use this as an opportunity to upgrade the property and make it more amenable to your current and future renters. It’s possible your tenant wants a more convenient way to wash or dry their clothes, or an AC unit because the flat gets too stuffy. You could offer to fix it up if they opt to stay, or you could simply upgrade the property for future tenants.
The heart of any successful landlord is the way they communicate with their tenants. This is the difference between making conversions and retaining customers and losing valuable revenue. Try to treat your customers like extended family members and nurture a friendly relationship. When issues do come up, deal with them in a competent, friendly and straightforward manner.
Raising Rent Without Scaring Your Tenants Away
Inflation rises every year and you need your rent to keep pace. The trouble is how to do this without scaring off your tenants in the process. Certainly, small, consistent annual increases to keep pace with inflation are easier to stomach than a more drastic one-time increase. Use the strategies above to give your tenants a good reason for the price rise, and work with them if they say they are unable to handle the increase at the moment.
If you still find that you’re having a hard time keeping tenants around, or have properties that frequently end up vacant, consider working with a property management company that has the experience to find and keep great tenants.
With more than 200 buildings managed since 2003, we at Hales Property Management know what makes buildings work.
Contact us for a proposal today, and get your first month of rental service free!