Updated January 4, 2021
One of the best ways to cut down on your costs as a landlord is to reduce the amount of time you spend dealing with vacancies. The best news a landlord can hear is their tenants want to extend their leases. How exactly do you retain tenants, though? If you are a landlord and want to learn how to incentivize tenants to stick around, check out what things have the most significant impact on keeping good tenants around.
Why you should care about tenants who extend their leases?
Before we cover the areas you can work on to keep happy tenants, first, let’s talk about why it is essential to have tenants who wish to extend their leases and how these tips will help you achieve that.
Here are 4 ways to motivate tenants to extend their leases.
#1: The first benefit of having a tenant extend their lease is to lower your vacancy rates. This is especially critical for landlords who have properties in difficult markets. The best thing you can do for yourself is to build a strong relationship with responsible tenants. This allows you to spend less time investing in tenant turnovers.
#2: Knowing what tenants are looking for will help you create better ad copy when advertising the property. Marketing your property in a way that attracts a variety of applicants gives you a better chance of choosing a responsible, long term tenant.
#3: Understanding what helps keep long term tenants will allow you to invest your money better. For example, if your tenants don’t care about the landscaping, it might not be worth investing money in the yard. Learn how to use your funds best to garner the highest return on investment.
What tenants want most
One of the first things to keep in mind when focusing on tenant retention is understanding the demographics of renters. The majority of renters are under 35, which means the most valuable upgrades should revolve around their interests.
If you are looking to lure in renters in a competitive market and keep them, consider Free Wi-Fi. Cable television used to be an amenity some rentals included as a perk. The internet now outweighs TV on the list of upgrades that interest renters.
Another upgrade that renters favor is new flooring. If your rental has outdated, stained carpets, it might be time to upgrade the floors. If you invest in a quality, durable flooring material, you will have less upkeep than carpeting requires. Consider something easy to clean like vinyl, tile, or laminate. By spending money on a flooring upgrade, you will be improving your rental for the long term. You'll also incentivize responsible tenants to stick around.
One perk that renters are drawn to and can help keep them as a long term renter is covered parking. This is particularly true in areas that see a lot of inclement weather. If your property does not have a garage, consider implementing a carport. You can have a carport installed for a much lower price point than a garage. This investment will improve the value of your property for current and future renters.
Easy communication & easy rent pay
Another way to keep good tenants around and at zero monetary cost is to make sure you are communicating with them. You can easily lose quality tenants if they feel like you do not respond to maintenance requests and are impossible to contact. Make communication easy and always respond to tenants on time. This can go a long way in keeping around happy tenants who extend their leases.
Make paying rent simple as well. Don’t ask your tenants to mail checks or run to your bank to deposit their rent. Set up online rent payments so they can quickly pay without hassle. When choosing how to invest your money in upgrades for your rental property, it is essential to consider your renters. While you may personally value some items over others, consider it from the tenant's point of view. If you have tenants that have been around for years and always pay you on time, you might want to consider talking to them about any upgrades you are considering.
Working with responsible tenants goes a long way towards cutting down on vacancy costs. With the right upgrades and quality communication, you can inspire responsible tenants to extend their leases, lowering your vacancies.
The following blog post was contributed by TurboTenant.
TurboTenant revolutionizes the rental process by providing savvy landlords with cutting-edge technology that’s intuitive, powerful, fast, and free. Through one-click online rental marketing, fully integrated tenant screening, customizable property websites, and online rent payments, TurboTenant is changing the way landlords manage property.
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