As a single-family rental homeowner in Houston, your most desired tenant is one who plans to stay for many years. Frequent vacancies can disrupt your cash flows and even result in losing money on a property. Along with choosing the right tenant, there are additionally several matters that you can – and should – do to encourage your tenant to stay longer. Making use of these approaches, you may find it as effortless as ever to keep your rental income steady month after month, year after year.
One of the primary ways to improve tenant retention is to make sure that you have good communication with them. This comprises communicating about their intentions to renew or not. It’s vital to start addressing the issue of lease renewal well before it expires. In many states, landlords are required to give at least 30 days’ notice. Although it’s an even better idea to start the renewal process even earlier than that. Few tenants enjoy feeling pressured, tricked, or being forced to decide on a lease renewal with less than a month to work things out. If you make an effort to wait until their lease renewal is right up against the deadline, you may lose a tenant who may have otherwise stayed in the home.
Apart from good communication, some of the most effective lease renewal strategies offer tenants an incentive for continuing to stay. This incentive could be included in several various things. As an example, perhaps your tenant is wavering on their decision to renew for a full year. Consider offering them more flexible terms, such as a 6-month lease, or give them a discount for signing a longer-term lease, often 24 months or more. Another idea is to offer your tenant a renewal at their current rate. This may be specifically alluring if rental rates have gone up a lot in your local market. Even though this may not always be feasible for you, it’s something to keep in your lease renewal toolbox. A tenant who feels like they have options are more likely to want to remain where they are.
Another way to incentivize your lease renewal is to offer to make improvements on the property. This works well if your maintenance plan includes scheduled upgrades you were planning to do anyway. Make sure your tenant ascertains which aspects of the property will be updated to grant them added incentive to continue staying. For a more proactive approach, start making small improvements to the property a few months before the lease is due to expire. Through actively maintaining the property while the tenant is staying there, you are giving an explicit message that you’re concerned not only regarding your rental home but also regarding their comfort, as well.
On a final note, in case you are still chasing down your lease renewals in person, consider switching to a more efficient digital approach. Various tenants like being able to do almost everything online and lease renewals are no different. Give your tenant access to the renewal documents well ahead of the renewal deadline. Then be present with them to identify if they have any inquiries or problems.
Merely giving your tenants the capability to complete lease renewal documents online may greatly increase your chances of renewal. Similarly, taking your business online will allow you to keep better track of your renewal rates and other important data. With efficient data and information in hand, you can more accurately choose the lease renewal strategy that will carry out well for your situation and tenants.
Consistency in your lease renewals may take some time and effort, but it actually pays off. By knowing a few effective lease renewal strategies and approaching your tenants will flexibility and planning, you can greatly improve your chances of keeping that great tenant in your rental home.
Do you love the income of a rental property but struggle with keeping up on all the tasks involved, like renewal? Contact Real Property Management Prestige to speak with a Houston property manager and see what we can do for you! You can call us at 281-984-7463 or contact us online.
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