January / February are typically some of the most busiest months of the year for owners because it’s also time for lease renewals.
Although some owners may not have any problems with lease renewals, the reality is that most owners do experience difficulties with this.
Thankfully, you can easily renew leases every year, without losing your best tenants, simply by following these tips.
Tip #1: Plan Ahead
Time flies for busy property managers—and before you know it, someone’s lease is coming to an end. Staying on top of your leases’ end dates all year long will help you to be ready in case you need to find a new tenant. Plus, if someone does decide to move out, you’ll want to know early enough to make the process smooth for everyone involved.
When you send out your lease renewal letter, in addition to communicating any updates to your lease agreement, it’s a great time to offer incentives for tenants who choose to renew. For example, you could give long-term residents a gift card or a free month of rent.
Tip #2: Research Before Raising Rents
It’s tricky to balance your desire to hold on to good tenants with your need to get paid the right amount for the properties that you manage. That’s why doing research on market rates for comparable units in your area is so important.
You should always weigh the risks of raising rents before you make a decision. Many tenants will look for a better deal elsewhere if their rent increases. Does the extra money you’d bring in each month justify the costs of refreshing the unit, finding a new tenant, and possibly having the unit lie vacant? Could you raise rents by a smaller amount to keep your tenants and bring in more money?
Tip #3: Consider Allowing Pets
Another thing to think about in the New Year is whether to allow residents to have pets. If you decide to remove pet restrictions, not only could it keep your current residents in place—it could also attract great tenants who you’d otherwise have ruled out.
Since more and more residents are looking to bring home a furry companion, banning pets can make it harder to find the right tenant. You can rely on security deposits to compensate for the increased risk of damage to your units.
Tip #4: Offer Upgrades
Some residents move because they just want a change of scenery. Making simple, cost-effective updates to your rental units can make them feel brand new—and help your residents to feel more at home.
Here are 3 straightforward ways to update your units:
Let tenants paint an accent wall in a shade of their choice
Change out an old appliance, or add one they don’t already have
Replace aging linoleum floors with wood or laminate
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For professional property management in the Central Valley contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.