Picture this, you have a multi-unit apartment building in Memphis, TN. It's fully occupied, and all your tenants are great, paying rent on time and following all your rules.
They're on a one-year renewable lease, which is expiring for most of them. Upon expiry, you realize that most of your tenants are opting to move out instead of renewing them.
What could be wrong? As a landlord, you don't want to start finding new tenants. It's expensive and time-consuming. It's better to find ways to increase these lease renewals from existing tenants than to find new renters.
Read on for a couple of strategies you can use to get your tenants to stay!
Start Tenant Retention Efforts Early in the Lease Cycle
One mistake some landlords make is making tenant retention efforts so late into the retention cycle. By this time, the tenant has already made up their mind about moving out, regardless of whatever interventions you implement.
For the most part, it's the small things that count. Do you, for example, provide an open line for tenant communication? Do you respond to their repair requests quickly?
Being a good landlord is an effective lease renewal strategy. Just go the extra mile to give your tenants the best living environment in your rental property and they'll reward you with lease renewals.
Enforce Fair Rental Property Rules
As a landlord, you're within your rights to draw rules and conditions that your tenants must follow.
Don't want pets? Want to impose a fee on door lock changes? Put it in the lease agreement and every tenant will comply.
However, your rental property rules can be the reason you have a low tenant retention rate. Understandably, you want to protect your investment, but if your rules are aggressive, don't be surprised to see tenants moving out.
It helps to conduct a survey and find out what rules your tenants don't like. Ask them about the changes they'd like to see and make the necessary adjustments.
If you have a no-pet policy, for example, it's a no-brainer that allowing pets will make a good number of your tenants happier. Roughly 70% of U.S. households own a pet.
Offer Attractive Lease Renewal Incentives
Being a good landlord and having fair rental property rules alone doesn't guarantee more lease renewals. Many landlords are doing exactly that anyway.
As a last-ditch effort, consider offering attractive lease renewal incentives. A 50% rent discount or even a free month, can make a tenant who had decided to move out rethink their decision.
There are various incentives you can give, but ensure they're compelling and relevant to your tenants.
A Professionally Managed Rental Property Gets More Lease Renewals
Keeping your rental property occupied with reliable tenants is one of your key goals. Once you find these tenants, you don't want to see them go. Getting them to sign lease renewals will help you achieve this goal.
Investing in professional property management is another way to increase tenant retention. PMI of Memphis is a full-service property management company that serves landlords in Memphis, Tennessee.
With over 100 years of combined property management experience, you can count on us to make your rental property investment profitable. Contact us today!