The average cost of a local move is over $1,700, and that means that a lot of renters would rather stay put as long as they plan on staying in the area and continuing to rent rather than buy. With that in mind, however, why is it sometimes so tough to get lease renewals?
If you're struggling to keep good tenants on your rental property, we're here to help. Read on to learn all about some incentives you can offer to encourage tenants to renew their leases.
1. Gift Cards
One of the easiest and most popular incentives that you can use to encourage lease renewals is a simple gift card. It may seem like a small gesture, but it's meaningful nonetheless.
It's best to pick a gift card that's versatile enough to be useful for anyone. A simple Visa gift card or an Amazon gift card are both good choices. This way, your tenants can use them for whatever they like.
We recommend making the gift card worth at least $100 to make it worthwhile for the tenant. That may seem like a lot, but a good tenant is priceless.
2. Low or No Rent Increase
This is a great option if you're trying to retain some of your favorite tenants. You can offer either no increase in rent costs (if possible) or a low increase that still makes your tenant's unit cheaper than others in the building. It's like grandfathering them into a lower rent.
Many landlords are resistant to this because they think it will have a negative impact on their rental income, but this isn't really the case. After all, one of the top reasons renters move is because they can't afford the rent, and a vacancy is expensive.
3. Flexible Lease Terms
This may be controversial, and it won't work for everyone. However, offering flexible lease terms is a great way to keep tenants in your rental property when they know they're unable to stay for an entire year.
Often, tenants may know that they'll have to move for work or school before a full year is up. They don't want the consequences of breaking a lease, but they don't know what else to do.
By offering shorter leases or waiving consequences, you can keep your tenants in place, and they're sure to appreciate it.
4. Professional Cleaning
Even the neatest and tidiest tenants can have messy homes after a full year of normal life. Why not offer them a professional cleaning session if they renew their leases?
This is great for tenants because it allows them to "reset" their space. It's also good for you as the property owner because it keeps your property in better condition.
Encourage Lease Renewals With These Incentives
Encouraging lease renewals is easy if you offer your favorite tenants the right incentives. Remember, you have to give your tenants a reason to stay, especially when there are so many other available properties to choose from.
Are you struggling with tenant management and other aspects of being a landlord in Tulsa, OK? PMI Green County can help. Our experienced property managers will make your life as a landlord a breeze.
Learn more about our available services and schedule a consult today.
