What if you could retain your current renters (the ones who always pay on time) and continue generating passive income? You can. With tenant management, you can boost retention rates to avoid vacancies.
Here are a few ways you can incentivize tenants for lease renewals. With these incentives, you can retain the best tenants for years to come!
Cash Incentives
About one in four renters are successfully negotiating lower prices. You could scare the best tenants away if you rush to increase their rent.
Consider offering your renters cash incentives if they renew their lease. For example, you can offer them a discount on their rent instead of increasing it. You can also offer two-year rental leases at little to no increase in rental rates.
Cash incentives will show tenants you care and want them to stay. Your tenants won't have to worry about inflation rates or finding a new home. Meanwhile, you can keep quality tenants that you can trust with your rental property.
Gift Incentives
Instead of a cash incentive, consider a non-monetary gift incentive. For example, you can offer:
- Televisions
- Tablets
- A new bed or mattress
Have your property manager talk to tenants and ask what's lacking from the rental property. Learn about their needs and concerns. For example, perhaps your tenants have an issue paying for parking.
You can waive the fee until next year as a gift!
Unit Upgrades
Unit upgrades and enhancements can help increase tenant retention and help you sign more rental leases. Upgrades will help your rental property stand apart from others in the area. Consider:
- New carpets or hardwood floors
- A coat of fresh paint
- New kitchen appliances
- A washer and dryer
Your property management company can help you choose desirable upgrades that also increase your property value.
Lower Expenses
About two-thirds of renters want green or energy-efficient homes. About 40% won't rent a property if it doesn't have green practices. Encourage your tenants to stay by helping them lower their expenses.
For example, you can cover media services like the internet and cable. Landlords who own apartment buildings qualify for referral discounts and rewards from internet and cable companies. Talk to your provider to determine if there are discounts available.
Use energy-efficient features and technology to help your tenants save money. Remote-controlled blinds allow tenants to use their smartphones instead of an outdated pulley system.
A smart thermostat allows tenants to control the climate at home, even after they leave. This is one of the most desirable amenities for renters.
You can also add smart lighting options. Tenants can set schedules for when the lights should turn on and off.
After offering these upgrades, market them to new tenants! These features can increase the unit's value long-term.
Boost Lease Renewals With Incentives
Increasing lease renewals will allow you to generate income from tenants you already trust. Use these incentives to boost tenant retention. Otherwise, consult your local property manager.
Their tenant management services can help boost tenant satisfaction, leading to stronger tenant retention rates. PMI Corpus Christi is a full-service real estate asset management company. We have nearly 20 years of experience helping clients maximize their profitability.
Contact us today to discover how we can help increase your retention rate!
