As a single-family rental homeowner in St. Peters, your preferred tenant is one who plans to stay for many years. Frequent vacancies can disrupt your cash flows and even result in losing money on a property. Aside from choosing the right tenant, there are also several things that you can – and should – do to encourage your tenant to stay longer. By following these guidelines, it will help you to keep your rental income steady month after month, year after year.
One of the ideal ways to improve tenant retention is to make sure that you have good communication with them. That involves communicating about their intentions to renew or not. It’s recommended to start addressing the issue of lease renewal well before it expires. In many states, landlords are required to give at least 30 days’ notice. But it’s an even better idea to start the renewal process even earlier than that. Few tenants enjoy feeling pressured, tricked, or being forced to decide on a lease renewal with less than a month to figure things out. If you’re trying to wait until their lease renewal is right up against the deadline, you may lose a tenant who may have otherwise stayed in the home.
Along with good communication, some of the most effective lease renewal strategies offer tenants an incentive not to leave. This incentive could be one of many other things. For example, perhaps your tenant is hesitating to renew for a full year. Consider offering them more flexible terms, such as a 6-month lease, or give them a discount for signing a longer-term lease, often 24 months or more. Another idea is to offer your tenant a renewal at their current rate. That will attract them if rental rates have gone up a lot in your local market. Although this may not always be feasible for you, it’s something to keep in your lease renewal toolbox. A tenant who feels like they have options is more likely to want to stay longer.
Another way to incentivize your lease renewal is to offer to make improvements on the property. That actually works, especially if your maintenance plan includes scheduled upgrades that you’ve planned to do all along. Make sure your tenant comprehends which aspects of the property will be updated to give them added incentive to stay. In addition to a proactive approach, start making small improvements to the property a few months before the lease is due to expire. By actively maintaining the property while the tenant is living there, you are sending a clear message that you are concerned not only with your rental home but also with their safety and peace of mind.
Ultimately, if you are still chasing down your lease renewals in person, consider switching to a more efficient digital approach. Most tenants prefer to do almost everything online, and lease renewals are no different. Give your tenant access to the renewal documents well ahead of the renewal deadline. Then, consult with them to find out if they have any requests or concerns.
Simply giving your tenants the chance to complete lease renewal documents online may greatly increase your chances of renewal. Moreover, taking your business online will allow you to keep better track of your renewal rates and other important data. By possessing better knowledge, you can more easily choose the lease renewal strategy that will benefit you and your tenant.
Consistency in your lease renewals may take some time and effort, but it’s worth it. By knowing a few effective lease renewal strategies and approaching your tenants will flexibility and planning, you can greatly improve your chances of keeping that great tenant in your rental home.
Do you love the income of a rental property but struggle with keeping up on all the tasks involved, like renewal? Contact Real Property Management Endeavor to speak with a St. Peters property manager and see what we can do for you! You can call us at 636-244-5959 or contact us online.
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