In Bethesda, MD, there is currently a 4.4% increase in lease renewals, but there is still a long way to go for landlords.
Focusing on improving your lease renewal rate is key to keeping reliable tenants and turning a profit on your rental property. If not, you could see a long period of vacancy and go through the stressful process of finding tenants.
Currently in this situation? Luckily, you've come to the right place. Here's how to increase your chances of lease renewals.
Start Your Retention Efforts Early On
Tenants rarely make snap decisions to move away and landlords should understand this. Often, property managers ask tenants a month before their lease expires whether they'll stay. But you should do this before the tenant moves in and understands the rental property rules.
To improve lease renewal rates, your property management company must stay in touch with tenants after they move in.
Act on Tenant Feedback
Another way to get a lease renewal is if you've acted on tenant feedback.
During the tenancy, property managers should ask whether the resident is having any issues or if there are specific improvements. If there's is an issue with the electrics, fix it immediately as it shows that you're reliable and value them.
Make Strategic Property Upgrades
Consider investing in a rental property upgrade. As there is more competition in the market, property managers must find ways to leverage themselves. Common rental upgrades include a new kitchen, bathroom, and even easy-to-maintain floors.
Keep Up With Property Maintenance
A common reason tenants renew leases is because of regular rental property maintenance. Not only will it minimize the occupant's frustration, but it will make them proud of their living space. A reputable property manager in Bethesda, MD, should perform regular maintenance on the property to prevent any issues.
Give Tenants a Grace Period
Tenants are more likely to stay if they've received a rental payment grace period. For instance, if the rent is due on the first, give your tenants several days to pay without any penalties. While it's essential to set a boundary, offering a grace period shows you respect the tenant, which will encourage them to stay.
Small incentives are a great way to encourage lease renewals.
On move-in day, give tenants a package of toilet paper or extra light bulbs. You can also send occupants a holiday card and even a discount if they sign a two-year lease. These simple acts will give tenants a good first impression, which should motivate them to renew their lease.
Get Tenants to Apply for Lease Renewals Today
Now that you're an expert on lease renewals, it's time to find a property management company to help you.
There are many tricks to encourage tenants to renew leases, such as making strategic property upgrades and giving them a grace period. Landlords should also invest in regular maintenance and offer small incentives. Good luck!
Want to get tenants to release their leases? Then contact PMI Capitol Region and we'll help you with your case.