The end of a lease marks an anxious period for landlords. If tenants decide to move, the rental must be marketed and the process of finding good renters starts. It’s why having tenants stay is much easier to deal with, and of course, financially better.
So, how do you motivate tenants to extend their leases? The following are just some of the ways to do just that.
Provide an Incentive
People love to save money. If they feel as though they are getting a deal, they will be more likely to stay. You can provide this deal by giving them some money off their rent for staying longer than a year. For instance, you can make it a one time discount of $200 off. You would probably have to spend that much on marketing or worse not having the place rented for a month or more, which would cost you more. Alternatively, you can give them a monthly discount, such as 5% just for staying. The best way to determine what is best is to look at how much money you would lose and how much you can stand to lose while still making a good profit from your investment.
Establish a Good Rapport
When tenants feel as though they have a relationship with a landlord, they are much less likely to move. They don’t want to let down the landlord, so they don’t even consider moving to another place. Take time to get to know your tenants, and don’t be afraid to be friendly with them. Of course, you want to remain professional since you are conducting business with them, but that doesn’t mean you can’t relate with them and just help them feel comfortable with you.
Ask Them What They Would Like for the New Year
Tenants want to feel as though their rental is their own property. You can help them feel that way by accommodating their needs and wants. Ask them what they would like for the next leasing period, and make a good effort in providing that for them. For instance, if they would like a new dishwasher, consider it and replace the one they have if it makes sense. If they would like to have a garden in the backyard, allow them to do it, if it doesn’t ruin anything. Working with your tenants will make them feel as though they can live at their will while still renting your property.
If you know your tenants are thinking of leaving, ask them why. If they say they found a rental for less, see if you can match that rental price. It’s a good idea to check a resource such as Rentometer.com for information about rental prices in your area. This way you know if you’re charging too much, or in some cases, not enough.
Of course, if they are looking for a bigger place because of a growing family or a location that is closer to their work, you won’t be able to do much. You can only do as much as you can do, so keep that in mind as you work with your tenants.
Sometimes, nothing can motivate tenants to stay where they are no matter what you do. However, there is a lot you can do to keep them happy, which will increase the chances of them renewing their lease. Consider the tips above, and see how they work for you.
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