Are most of your tenants moving out upon the expiry of their lease?
Something's not right. High tenant turnover is bad for your rental property business. Finding new tenants costs time and money, a situation you want to avoid at all costs.
Landlords take various measures to keep this rate low, including having tenants sign long-term lease agreements instead of a month-to-month arrangement.
However, even with a lease, there's no guarantee your tenants will renew after it expires. Luckily, there are strategies you can implement to help increase lease renewals and tenant retention.
Let's unpack them:
1. Draw Tenant-Friendly Leases
A lease agreement is a legal document that describes the conditions of using the rental. Are the conditions in your lease helping you keep tenants?
Reading some tenant leases, it's hard not to conclude that they aren't tenant-friendly. For example, if you're charging exorbitant fees for simple things like changing door locks when a tenant loses the key, they will look for another rental with friendlier fees.
Some tenants use generic lease agreements without caring about the conditions being imposed on tenants. Instead, develop a custom lease that not only protects your investment but also the tenant's welfare.
2. Provide a Superb Tenant Experience
Are you the kind of landlord who forgets about tenants as soon as they have signed the lease and moved in? If yes, the consequences of your actions will be evident during lease renewals. Tenants don't want to keep living in a rental whose landlord doesn't seem to care.
Bear in mind that you're running a rental business. Tenants are your customers. Just like every other business owner, you must strive to provide the best customer service.
Inspect the property regularly and fix issues ahead of time. You have a duty to provide a safe and healthy environment for your tenants but go beyond the bare minimum.
Also, respond to repair requests and tenant complaints promptly. Maintaining an open line of communication also goes a long way to making tenants feel valued.
3. Hire Professional Service Providers
At your rental, you might need to hire various vendors, such as a security company and a cleaning company. Although these companies are third parties, before tenants' eyes, they're an extension of the landlord.
If you hire vendors who don't do their job professionally, it shows tenants you're negligent. It's of no value to have security personnel on the property if theft incidents keep increasing.
If you don't replace such vendors with professionals who know their job, don't be surprised when no one is renewing their lease.
A Property Management Company Can Ensure More Lease Renewals
You've worked hard to find great tenants, but that's the easy part. The hard part is making them stay for as long as possible. Lease renewals are key to being a successful rental property investor.
If you'd like to take a professional approach to tenant management, PMI Advisory Group is here to help. We provide full-service property management for landlords in Topeka, KS. Contact us to learn more about our services.
