The simplest way for property managers to minimize vacancies is to increase renewal rates. If keeping good tenants is important, now is the time to focus on retention plans. Consider these easy tips to keep tenants coming back year after year.
Foster Good Relationships
Creating a good working relationship and building a community takes dedication and time, but it helps tenants feel as if they’re at home. When a tenant has a good relationship with their property manager and other renters, they won’t be as tempted to accept a good entry deal somewhere else. In many cases, good customer service is all that’s needed to encourage a tenant to renew their lease.
Focus on Follow-Ups
A good retention plan begins when a tenant first signs a lease. Raise engagement levels by asking team members to dedicate their time to lease renewals and have them check in with tenants periodically to ensure there are no issues. Finally, get more renewals by approaching tenants before the end of their lease. Asking for an early renewal allows tenants to accept an offer before they find a new place, and it lets landlords present incentives later.
Incentives don’t have to come in the form of discounts or cash offers. Amenities often entice undecided tenants to renew their leases. Making a rental more valuable by updating appliances, flooring, and other features will make tenants happy and increase the property’s value the next time it is vacant.
Listen to Tenants
Some tenants are hard to work with, but lease renewal time makes it clear just how important customer satisfaction is. Listen to tenants’ most common complaints and find ways to mitigate them. When tenants initially decline to renew their leases, convincing them to stay can be as simple as resolving minor issues.
Don’t Kill the Deal
While many property managers increase their rates to keep pace with inflation, it’s important to avoid shocking jumps. To balance profits and expenses, consider increasing the rent slightly with every lease renewal.
Preventing turnover and increasing lease renewal rates is a goal that requires attention throughout the term. Allowing tenant retention plans to evolve is essential. If a concept has no effect, try a new idea, and see where it leads.