The percentage of tenants that move out on the end date of their lease agreement each year is your turnover rate. For landlords of single-family units, you don’t want that rate too high, especially if you have a good tenant currently living there. If your turnover rate is too high, it could impact your ROI, which is why you want to retain tenants. To help keep money in your wallet, here are five ways to get a tenant to renew their lease.
Address Complaints and Requests Efficiently
When you address tenant concerns effectively and promptly, you’re showing them that you care about their quality of life. Renters want a landlord that they feel they can trust and that cares about their living experience. A thorough maintenance request policy requiring a maintenance request submission form and a transparent maintenance priority system can make this process easier for everyone involved.
Keep a Clear and Open Line of Communication
Your lease agreement will be your biggest ally when communicating with your tenants, as it should clearly state rules, policies, and expectations. With a good lease agreement, you mitigate many tenant questions and let them know exactly what you’re looking for in a renter. You should also provide tenants with your office hours and contact information so they know when and how to reach you.
Offer Incentives for Renewing Their Lease
Another great way to get tenants to renew their leases is to offer them incentives to stay. This can be anything reasonably within your budget, such as updating an appliance, cosmetic upgrades, or a discount on rent. Remember that you can’t favor tenants, and what you do for one tenant, you must do for the others, or you may end up with a discrimination lawsuit.
Give Tenants a Grace Period for Rent Collection
When landlords give tenants grace periods, it shows tenants that you understand how life gets in the way, especially monetarily. Even a grace period of three to five days can make a world of difference for a struggling renter. It can be challenging for tenants to find a landlord that cares about them. When tenants find one, they’re much less likely to let them go.
Gather and Utilize Tenant Feedback
Tenants want to feel understood and heard, just like any other person, and don’t want to feel like just a revenue stream. Offering them a space to give you feedback on their experiences is a great way to provide that care and attention, especially when they see you act on some of that advice. While you certainly don’t have to adhere to every request a tenant gives you, your tenants can be your best marketing tool, and they may offer you some great suggestions.
Overall, the best way to get a tenant to renew their lease is to treat them like a person and to be as understanding as possible. And if you’re a landlord looking to get a better eye on the market, Excalibur Homes has you covered. We have homes for rent in Nashville, Tennessee, so you can better grasp the fair market price to keep your tenants longer.
