The tenant turnover rate for 2021 was at a record low for the decade at 15.6%, however, this was mainly due to state laws that paused evictions during the pandemic.
Now that people are recovering financially, if you have a good tenant then you really should try to keep at your property. But, how can you ensure that they will renew the lease?
Use these tips for convincing your renters to stay put.
Ask in Advance
Before the lease runs out make sure you remind the tenant to renew well in advance. You want to start asking them to renew the lease about 90 days before the end date.
By not procrastinating, you will limit the chances of them looking for a new property because it isn't in their mind yet.
And if your tenant does want to leave then you have plenty of time to find a new tenant. This will avoid leaving your property vacant, which will cost you money.
Make Property Enhancements
One of the best lease renewal strategies is to make your property even better than before. Some tenants may have a wish list of amenities that your property is lacking. Therefore, they may start their search for another home that has these items.
Be proactive and ask your tenants what they want. You may find that it is as simple as providing a washing machine or upgrading the floors.
The cost of adding an amenity or making minor renovations will eventually pay off because you won't have to search for another tenant. This will save you from performing expensive yet important tasks like tenant screening.
Be a Good Landlord
Sometimes all it takes to get a lease agreement renewal is to be a decent landlord. Find a balance between offering privacy with being attentive to your tenant's needs.
To get a rental agreement renewal be sure to complete maintenance requests in a timely manner, keep the outside of the property clean and safe, and offer options like allowing pets in the home.
Offer Flexible Rent Options
Some areas of California are exceeding the 5% rent increase cap after inflation to reach up to 10%. However, if you are looking for a lease renewal then you might want to consider a lower increase to keep your tenant.
You can also offer flexible payment options for rent. For example, give your tenant up to a week to pay without charging any late fee. This will help people who live paycheck to paycheck that may have to wait for a certain date to pay rent.
Take Advantage of a Renew Lease
A renew lease is a chance to enhance your rental property by using a property management service. Get help with rental retention as well as payment collection to make your investment as seamless and profitable as possible.
Get started by contacting a representative at Advantage Property Management Services to get more out of your rental property.