Did you know that it costs over $1,000 to deal with one instance of tenant turnover? That’s almost a month’s worth of rent in some markets! If you want to avoid the costs of tenant turnover, it’s critical to encourage your tenants to renew their lease agreement. Here’s how.
#1 Deal With Complaints and Concerns Promptly
Your renters will be more satisfied if they feel their problems are a top priority, from a damaged air conditioner to a noisy neighbor. This shows them that you truly care about them, no matter how annoying their problems may be.
It’s worth mentioning that certain situations can be dealt with in a week, but others need to be dealt with as soon as possible. For example, an HVAC that doesn’t work needs to be fixed within one day as you are responsible for providing proper heating and cooling to your tenants. On the other hand, you do not need to drive all the way to your rental property for minor maintenance issues, such as a flickering light.
Explain to your tenants how they can contact you, as well as when they can contact you during the day and night. Alternatively, if you’ve partnered with a property management company, you can provide your tenants with their contact information.
#2 Stay on Top of Property Maintenance
Chances are that tenants who are happy in the place they call home will renew their rental contracts. To ensure it’s in pristine condition at all times, you need to stay on top of rental property maintenance. By doing so, you’ll be able to preserve the property’s condition and put an end to tenant dissatisfaction.
Not only that, but preventive property maintenance is one of the best ways to ensure your property appreciates over time. That way, you can continue to raise your rent and sell your rental property for a pretty decent price down the road.
Don’t have the time to stay on top of maintenance? Partner with a South Florida property management firm that has a reputable network of vendors to whom they can entrust the work to.
#3 Make the Rental Property Feel Like a Home
By far, one of the best things you can do to encourage your tenants to stay longer is to get them involved. Although your tenants don’t own the rental property, that doesn’t mean they can’t share their suggestions regarding property upgrades. So, if you’re planning to improve your property, get your tenants involved – after all, they likely know the property better than you do.
If your tenant thinks that the backyard needs sprucing up, keep that in mind. If they think the back of the property needs to be repainted, be open to that, too. In this way, you can make them feel more at home.
Be sure that the property improvements add value. Consult a reputable property management company that can determine whether or not an improvement is worth it. Remember that your tenant won’t be there forever. With that said, the property needs to attract other tenants, as well. Certain improvements like pools can actually deter people as they pose a safety risk.
#4 Be Strict (But Not Too Strict) With Rent
Rent is usually due on the first, but it should be in your best interest to agree to a grace period. For example, by allowing your tenant to pay until the fifth day of the month without any late fees, you’ll be able to encourage your tenant to extend their lease agreement.
However, it should be clear to your tenant that any payments made after the grace period will be considered late. That way, you won’t be too lenient on them, either. The extension is only one way to show that you understand their situation, however, you still expect them to pay promptly at all times. In other words, it shows your tenants that you aren’t a tyrant.
#5 Offer Modern Systems
Modern-day renters want to be able to pay their rent online. They also want to be able to use their smartphone to interact with their property management company, whether it’s to report a complaint, concern, and more. They’d also rather rent a home that’s equipped with smart features such as smart thermostats, smart locks (keyless entry locks), and more.
For these reasons, you should find ways to incorporate innovations into your real estate investment’s day-to-day operations. These tiny improvements show your tenants that you’re up-to-date and that you will provide them with the convenience they want. That way, you can get them to renew their lease agreement again.
#6 Offer Gifts From Time to Time
Gifts go a long way in getting your tenants to renew their lease agreement. When they move in, provide them with a “care package” that contains things they’d likely need, such as lightbulbs and a bottle of wine. On holidays like Thanksgiving, give your tenants a card and a basket of goodies.
Incentives can also entice tenants to stay. Inform them that if they renew their lease, they will be able to benefit from a discount on one month’s worth of rent. Or if they can refer a friend to be the replacement tenant, you can offer to cut their final rent by a certain percentage.
#7 Respect Your Tenant’s Privacy
A common cause for not renewing a lease agreement is that the property owner or management firm does not respect the tenant’s right to privacy. If the renters’ right to privacy is regularly violated, the tenant may file a lawsuit to terminate their lease early – or worse, to file a lawsuit against the property owner for damages.
Remember that the property may be yours, but that doesn’t give you the right to enter it without your tenant’s go signal. You should always provide advance notice if you intend to enter the property.
Partner With Luxury Property Care Today
The goal of Luxury Property Care’s experts is to ensure your tenants renew their lease agreement time and again. Partner with us today to prevent tenant turnover, improve tenant satisfaction, and more. For property management on autopilot, get in touch with our team today – call (561) 944 – 2992 or complete our contact form to discuss your property’s needs.