When you're an Inland Empire property owner, the last thing you want is for the property to sit vacant. That can cost you thousands of dollars. And the longer your property is vacant, the more willing you'll need to be to lower the lease price.
That's why it's so critical to ensure that your best tenants stick around. Read on to learn how to get tenants to do lease renewals!
Communicate With Your Tenants Early
You don't want your best tenants to start looking for other rental options. That's why you'll need to commit to communicating early. You can start with a lease renewal letter.
A letter can outline the steps for lease renewal. Begin the letter by thanking the tenant for being such a good addition to the community. Then give them a clear way to contact you.
If you want to increase rent, you should be upfront about this. State the rent price you propose if the tenant agrees to renew their lease. And offer to meet with them in person to discuss details.
Incentivize Renewals
With the right incentives, you can retain tenants. After all, screening tenants and processing paperwork takes a lot of time. It's far easier to keep the ones you like.
One way to entice tenants is with a discount on rent. Consider offering this if a tenant agrees to sign a longer-term lease. Likewise, you could give a tenant a free covered parking spot for a year.
Another option is to offer upgrades to their apartment. You could replace an aging stove or washing machine. Or you could offer new paint or flooring.
You may even want to let a tenant upgrade to a new apartment. These perks can help a tenant decide to stay.
Be Flexible
Some tenants may not be willing to commit to another year in your apartment. If they're planning to change jobs or move into an Inland Empire house, they might want a shorter lease option. For responsible and loyal tenants, it can pay to be flexible.
You might need to be willing to agree to a six-month lease with a month-to-month approach after that. While you won't get the assurance of a full-year commitment, you'll know that you're getting at least six months.
And you'll have a responsible renter in place until you can find someone new. You don't want a tenant to look elsewhere because they're concerned about costly penalties for breaking a lease. Instead, it's better to give in a bit to keep your best tenants around.
Pursue Lease Renewals
Lease renewals are essential when you're trying to make the most of your income property. Start talking to tenants early about lease renewals and offer incentives to sweeten the deal. Be flexible about shorter lease terms and be transparent about any pricing changes.
PMI Inland Empire has the blend of property management and real estate brokerage expertise to help elevate your property. With two decades of industry experience, we help clients maximize returns on their real estate portfolios. Contact us today to learn more!
