According to Gezgo, most factors that cause tenants to end their lease are preventable. While some tenants certainly do leave due to changing life circumstances, most choose not to renew their lease because of issues with their rental property.
Finding new tenants is expensive, and high tenant turnover rates can seriously affect your return on investment. It's best to encourage as many lease renewals as possible. Thankfully, there's a lot you can do to retain tenants.
Are you interested in learning more about how to get your tenants to stay? This article lists some effective lease negotiation tips.
Competitive Rent Pricing
According to The Seattle Times, some renters in Washington are spending as much as half their income on rent. Tenants struggling financially are likely to move in search of cheaper rent, especially if they feel you're charging an unfair rate.
Charging too much for rent could actually lose you money in the long run due to low lease renewal rates. You should do a regular market analysis to determine a competitive but fair price.
When increasing the rent, always gradually raise it and give tenants plenty of warning. A shocking increase out of nowhere is sure to have your tenants browsing the rental listings.
Offer Flexible Lease Options
The younger generations tend to feel more uncertain about the future. According to Ernst & Young, financial uncertainty among Gen Z is at an all-time high. Because of these anxieties, many younger tenants are reluctant to make long-term financial commitments.
You can encourage these doubtful tenants to stay by offering a more flexible rental agreement extension. For example, allowing month-to-month rental options gives tenants a sense of freedom and lets them stay at your property without feeling trapped.
Allow Personalization
Many young renters feel depressed that they can't make their living space their own. An article in the Washington Post suggests some renters are so passionate about personalization, that they'll risk their entire security deposit for it. These renters want to do things like:
- Paint the walls in colors they like
- Hang decorations on the walls
- Other minor renovations
You can set yourself apart from other landlords by allowing your renters to make their space their own. Tenants won't want to give up a space they've worked hard on, so you'll face fewer lease management problems.
Maximize Lease Renewals
The best way to get more lease renewals is to create a sense of loyalty and attachment. By offering flexible and affordable rental rates and allowing your tenants to express themselves with personalization, you'll set yourself apart from other landlords.
Of course, these are just general rules of thumb. To create the most effective lease renewals strategy for your portfolio, you need local property management expertise. Management Group is here to help.
We're a full-service property management company and our goal is to give you peace of mind through effective management. We've already helped thousands of other landlords in Puyallup. Contact us today to learn why they trust us with their most valuable assets.
