Acquiring a new customer can cost five times more than retaining an existing one. The same can be said for retaining reliable tenants. Generating more lease renewals will save you marketing and tenant screening expenses.
You'll have peace of mind knowing reliable tenants are living in your investment properties. Not sure how to retain renters? Read on for the tips you need to boost your retention rate!
Research the Local Market
Your existing will want to move if your investment property doesn't meet their expectations. Research the Sacramento rental market. Consider the amenities these rentals are offering that yours don't.
Choose upgrades that will increase the value of the property and make it more appealing. These include:
- Backsplash
- New floors
- Energy efficient windows
- New kitchen appliances
- Smart home technology
- Fresh paint
- New light fixtures
- New kitchen cabinets
- Bathroom renovations
- Exterior upgrades (including landscaping)
Otherwise, talk to your existing tenants. Ask what upgrades they're most interested in. Their feedback will help you make informed choices.
It will also show tenants that you're listening and care about their living experiences. They may stay knowing you're an empathetic landlord.
Screen Tenants
Develop a tenant screening process. Screening applicants will ensure you choose reliable renters worth retaining. A thorough screening report should include:
- Criminal background checks
- Eviction histories
- Credit scores
- References
- Employment verification
Outsource this process to a property manager. They'll help you find great tenants you'll want to retain.
Communicate With New Tenants
Once you acquire new tenants, foster strong tenant-landlord relations from the start. Provide renters with access to an online portal. Let them know they can reach out if they need anything.
Tenants won't want to renew their leases if you're unresponsive. Consolidate communications using an online portal. This can help minimize delays.
You can even use automation to respond to simple questions. Otherwise, outsource this to a property manager.
Complete Property Maintenance
Complete property maintenance requests with minimal delays. Otherwise, tenants may grow frustrated. They'll move out to find a landlord who cares about providing a habitable living space.
Offer Incentives
Offer incentives to encourage tenants to renew their leases. These can include:
- In-unit upgrades
- Fit-out contributions
- Rent-free periods
- Rent abatements
- Waived fees
- Gift cards and coupons
You can create a referral program to attract new tenants.
Negotiate Lease Agreements
Send renters a 90-day notice before their lease ends. Remain willing to negotiate their updated lease agreements.
For example, some tenants may request a lower rent increase. Others may request cleaning services before renewing their lease.
Talk to Your Property Manager
Save time and money by partnering with a property management company. Rely on their proven strategies to generate renewals. With their help, you can keep tenants happy beyond one lease term.
Generate More Lease Renewals in Sacramento
Increasing lease renewals will help your occupancy rate and ROI rise. Use these tips to retain your reliable tenants. Remember, you can always ask your property manager for help.
Our team at PMI American River has 20 years of industry experience generating lease renewals. We use proven strategies and state-of-the-art technology to maximize profitability.
Rely on our industry experience as part of a fast-growing property management franchise. Contact us today to generate more renewals.
