Did you know that it takes 17.6 months on average to recover the cost of losing a tenant in Austin?
Tenant vacancies are expensive and the longer they last, the more you pay. That's why it's essential to keep quality tenants when you can.
Offering lease renewals is an art. If you want the best chance at success, implement these strategies.
Be Smart About Rent Increases
If you intend to increase the price of rent upon renewal, be smart about the increases you make. Renters are easily dissuaded from renewing a lease because of the price.
3% to 5% increases are common and shouldn't cause too much backlash. If your rental price is above market average already, raising the rent could force current residents out.
Be prepared to answer questions about rent raises, your tenant will likely ask why this change is being made. Cite specific examples, such as amenity additions, increased building expenses, tax increases, etc.
Create a Seamless Lease Renewal Process
Lease renewals don't have to be a headache for landlords or tenants. No one wants to jump through hoops to set up a place to live.
To avoid creating more work for your residents, send them a notice 60-90 days in advance that outlines the lease renewal terms. Be helpful by answering their questions or scheduling to meet in person to discuss the lease further.
One of the best lease renewal strategies is to digitize the process. Handling the process online is the simplest way for a tenant to accept or deny a lease renewal offer.
Offer Incentives
Finding new tenants in Austin is expensive. You can offset the cost of this by offering incentives to persuade great renters to stay.
Offering incentives can sweeten the deal and show residents that you care if they stay or go. Consider these offerings when sending a lease renewal:
- Waive lease renewal fees
- Offer a free month or rent credit
- Include a gift card with your renewal letter
- Offer a free upgrade
You can invest in small gestures throughout the lease duration to keep tenants happy and most likely to renew.
Invest in the Resident Experience
The best way to get more lease renewals is to make sure your residents are enjoying their homes. Investing in the resident experience involves:
- Handling maintenance requests fast
- Hosting resident events
- Maintaining open communication
- Enabling smart access throughout the building
- Investing in a delivery management solution
Lease renewal periods may begin when you send the offer. However, you should be thinking about lease renewals as soon as a resident moves in.
Making a strong first impression and continuing to invest in the resident experience goes a long way.
Get More Lease Renewals Now!
Getting more lease renewals can maximize your return on investment. Use these strategies to keep tenants happy and make it easy for them to renew their lease.
Following market trends, crafting lease renewal offers, and investing in the resident experience is a lot of work. Let us take some of the burden off your shoulders.
At Monte Davis Property Management Service, we have a team of qualified professionals with years of experience in Austin. You can always count on us to help you maximize your investment.
Contact us today to learn more about our services.
