When a resident moves out, it can be pretty costly for a property manager. You have an empty space that costs you money every month, you have to invest in marketing and lead generation, and spend a lot of time trying to find a new resident. You are much better off if you can retain your residents. Here are four tips to increase lease renewals so you can avoid the costs and energy of finding new residents for your property.
1. Offer Discounts
You can build a discount into a lease renewal. A popular way is to offer exponentially discounted rent for longer lease terms. For example, lease agreements for six month rents will be more expensive than lease agreements for five years’ rent. You can also offer a discount like a lower payment on their first month of renewal or even wave a month’s worth of fees for parking. If residents are going to save money, not just from the costs associated with moving, but on their rents, they are much more likely to renew their lease agreement.
2. Upgrade Your Property
Adding new amenities to the property, upgrading the appliances in their apartment or condo, or simply painting the building, can be extremely attractive to current residents. If you invest in your property to keep it updated and competitive with newer properties, your residents will be inspired to stay to enjoy all the newest features.
3. Come Up With Clever Incentives
If you can’t upgrade your property features this year or afford to offer big discounts for lease renewals, there are smaller ways to encourage your residents to stay. Resident appreciation days, gifts, and events can make your residents feel like they are valued by your company and will be more inclined to renew their rental agreement.
4. Develop A Relationship
It sounds very simple, but if you develop a relationship with your residents beyond just only talking to them when it’s payment time or there is an issue, they are more likely to stay. People want to live somewhere where they feel like a part of a community. If they have a relationship with you beyond just property manager and resident, they’ll feel more at home on your property and will be more inclined to stay for the long term.
These four tips will help ensure that your residents renew their leases. So make sure that you don’t just focus on attracting new residents, but you also incorporate ways in your marketing strategy to keep your current residents.