How many of your tenants are so happy with their living experience in your rental that they stay? In a single year, 62.7% of renters renewed their leases. Encouraging lease renewals can improve your occupancy rate and ROI.
If renters don't stay, your vacancy rate will increase, costing you potential revenue streams. Not sure how to generate renewals? Read on for the tips you need to improve your tenant retention rate!
Streamline Tenant Communication
Tenants won't want to stay in your rental property if you're difficult to reach. Instead, they'll look for a landlord who cares about their needs. Foster strong tenant-landlord relations the moment new renters move in.
Try to remain responsive to each tenant's concerns. Streamline tenant communication using an online tenant portal. From there, renters can:
- Automate rent payments
- Send inquiries
- Submit maintenance requests
- Review their lease documents
Use this portal to provide renters with a notice before their lease lapses. You can outline the lease renewal options you have available.
When speaking with tenants, always remain respectful and professional. Take the time to consider their feedback.
Consider asking tenants how you can improve as a landlord. Remain open to their reasonable requests to show you care and want to help. Keeping tenants happy could encourage them to renew their leases.
Understand Lease Renewal Laws
Before sending tenants a lease renewal notice, review Kentucky's rent renewal laws. For example, tenants have the right to be notified of rent increases within a reasonable time frame. The increase must align with the terms of their lease.
Renters have protections against increases that are retaliatory or discriminatory. Follow these laws to avoid legal issues.
Reconsider Lease Renewal Charges
Rushing to increase a tenant's rental rate could cost you a potential lease renewal. Over 25% of renters are successfully negotiating lower prices. Remaining open to their needs could improve your retention rate.
Instead of immediate lease renewal charges, talk to your tenants. For example, some may agree to renewing their lease at an increased rate if you offer property upgrades. Others may ask for a rental payment grace period.
Complete Rental Property Maintenance
Schedule property inspections and complete timely repairs to keep your rental property in good condition. If it's crumbling, tenants won't want to stay. They'll look for a better living environment.
Consider adding improvements to enhance the tenant's living experience. These include energy-efficient appliances and windows. Show tenants you can save them money while offering a great place to live.
Outsource Property Management
Instead of completing these tasks alone, outsource. Hire a full-service property management company. They can help with:
- Tenant communication
- Accounting
- Rental property maintenance
- Rent collection
- Marketing
A property manager can improve tenant satisfaction rates. Tenants will know they can reach out for help when they need it.
Encourage Lease Renewals in Louisville, KY
Generating more lease renewals will improve your occupancy rate and ROI. Use these tips to encourage renters to stay. Otherwise, outsource to a property management company.
Our team at PMI Louisville has 20 years of real estate management experience. We help owners like you maximize their profitability.
Rely on our experience, proven strategies, and state-of-the-art technology. Contact us today to generate more renewals in Louisville!
