How many of your tenants in Pensacola, FL renewed their leases last year? According to Avail, only 28% of surveyed tenants said they negotiated the price on their most recent renewal. Most tenants are unaware that negotiations work 25% of the time.
Instead of waiting for tenants to come to you, leverage these lease renewal strategies. Improving your tenant retention rate can lead to a higher occupancy rate. You won't have to waste money on marketing, tenant screening, or vacancies.
Not sure how to encourage a lease agreement renewal? Read on for our top strategies!
1. Screen Applicants
You won't want to retain tenants who are troublesome and costly. Before applying these landlord strategies, invest in tenant screening services. A thorough screening process will help you avoid renters who:
- Cause landlord stress
- Don't pay rent on time
- Upset neighbors
- Cause property damage
Screening applicants alone can be time-consuming. You may gather inaccurate reports, causing you to choose unreliable renters. Outsourcing this process to a property manager can save you time and money.
2. Apply Helpful Landlord Strategies
Being a great landlord will help you forge strong landlord-tenant relationships. Your current renters will want to stay, knowing they can rely on you. To build great relationships:
- Respond to inquiries quickly
- Complete maintenance tasks without delay
- Be professional, friendly, and helpful
- Empathize with your renters
- Understand landlord-tenant laws
- Communicate effectively
- Protect your tenants' privacy
Keep communicating with tenants throughout the year. For example, you can send holiday cards or small birthday presents. They'll feel appreciated and cared for, leading to higher satisfaction rates.
Let renters know when their lease is about to end and ask if they're interested in renewing. A heads-up will give them time to consider their options.
Be willing to negotiate. For example, you can offer flexible leasing terms (like a monthly option). Compromising can help you retain renters, improving your occupancy rate and ROI.
3. Incentivize a Lease Agreement Renewal
Use incentives to encourage a lease agreement renewal. For example, you can offer property upgrades or:
- Gift cards to local stores and restaurants
- Cleaning services
- Energy-efficient upgrades
- More parking options
- New kitchen appliances
- Smart home technology
- Better security
Choose upgrades that will enhance the tenant's living experience. They'll want to stay, knowing you offer a value other landlords don't.
4. Hire a Rental Property Management Company
You don't have to apply these property management tips alone. Instead, consider partnering with a rental property management company. Leverage their proven strategies to offer tenants better living experiences.
Your property manager can handle:
- Tenant inquiries
- Maintenance and inspections
- Rent collection
- Evictions
- Lease renewals
- Marketing
With their services, you can find and retain great renters long-term.
Discover More Effective Lease Renewal Strategies
These effective lease renewal strategies can help you retain renters, improving your occupancy rate. Once you reach full capacity, you can maximize your earning potential. Remember, asking for help could prove key to your success.
PMI C-Shell has gained experience and trust worldwide as a full-service property management company. Trust our professional guarantees, state-of-the-art technology, and 10 consecutive years in the Top 500. Contact us now for a free rental analysis.
