US citizens pay an average of $1,959 for rent monthly. Your rent might be more affordable than your competitors. But that doesn't change the fact that many people have had issues paying rent in recent years.
You certainly won't attract renters if you're charging a lot for a shabby apartment with no tenant incentives. Renters will only tolerate so much before they move on to greener pastures.
There are ways to garner lease renewals. Keep reading if you'd like to learn how to keep your current tenants happy and occupying your investment properties.
No Arbitrary Rent Increases
We're not saying that increasing rent is wrong or bad. We understand you have to make an income. But what we are saying is don't increase your rent too much. A 3 to 5% increase won't upset tenants too much.
An above-market increase will drive renters to seek shelter elsewhere. It's a good idea to have a reason for raising the rent - don't raise prices solely because "I want more money."
Tenants will also want to know why. Be honest and explain about added amenities, higher taxes, or extra maintenance costs.
Offer Tenant Incentives
Incentivizing lease renewals boosts the odds of current renters sticking around. Giving tenants perks for renting from you makes them feel valued and gives you advantages over the competition.
Here are a few ways you can sweeten the deal for tenants:
- Consider discounting lease renewal fees or offering rent credits
- You can also offer a rent-free month
- Offer free upgrades like new plumbing fixtures or new appliances
- Give gift cards with rent renewal notices
- Do small gestures, like a gift card for birthdays or holidays
Perform Maintenance
If you want people to live in your investment property, you should make it somewhere worth living. Rental property maintenance is vital to ensure everything works as it should.
Check plumbing and HVAC performance. Change batteries in smoke detectors and invest in pest control. Seal windows and doors so heat and air don't escape.
Paint is a simple rental property upgrade that goes far in freshening up rooms and hallways. Add new fixtures to cabinets and clean carpets and furniture. Don't forget to install newer and more modern lighting.
Streamline the Renewal Process
No one wants to spend their entire day trying to renew their lease. Send a notice two to three months in advance so they have a long enough lease renewal period to consider the prospect.
Answer any questions renters have about the process and offer digital lease agreements. Many tenants are accustomed to doing paperwork. Don't forget to keep paper copies for your less tech-savvy tenants.
Increase Lease Renewals in Fort Worth
Earn lease renewals by making people want to stay. Consider discounting lease renewal fees and have a property maintenance routine to spruce up your investment property. Don't increase your rent unless you have to.
Red Team Real Estate is a Fort Worth property management company with 12 years of industry experience. Our team can help you with all your leasing service needs. Contact us to get the most out of your investment property.
