By May of 2023, the average year-over-year rent inflation will be a whopping 8.4%! Rent inflation is a problem that everyone's dealing with while the economy is characterized by high inflation and interest rates.
Having to put your rental prices up can feel risky. On the one hand, you have to keep your prices high enough to make a decent rental income, but on the other hand, you don't want to risk losing good tenants.
In this handy guide, we're going to give you some tips to get your great tenants to consider renewing a lease.
Make Renewing a Lease As Easy As Possible
Many people put a premium on time-saving and hassle-free processes and will often choose slightly more expensive products just because they make life more convenient. You can use this phenomenon as a landlord by making your lease renewal process easy and quick for your tenants.
The first and best way to do this is to allow your tenants to sign the lease agreement electronically. You can stretch this philosophy further by allowing tenants to pay rent through Cash App, Venmo, PayPal, and other digital wallets. If your rental-related admin is the easiest for your tenants, it's less likely that they'd look somewhere else.
Make Good Upgrades
Another element of modernization to consider is making upgrades for the sake of convenience as well. Energy prices and electric grid instabilities are a growing concern in many nations today, which is why it's a good idea to have a backup generator or solar array set up for your property. If social unrest becomes more of a worry, then upgrading your rental property's security systems and features is another way to keep your lessors happy.
The upgrade doesn't have to relate to the basics. You can also opt to install something nice to use like a rooftop garden or a bicycle repair station.
Make an Effort to Respond to Feedback
Some of the biggest drivers of high tenant turnover are maintenance issues and unresponsiveness to feedback. If you want a great tenant to renew a lease, it's 'strategic' to make a point of responding to all of their concerns, queries, questions, and quirks. When they get a prompt response to their correspondence, they'll feel appreciated and taken care of.
This means that if they ask to have something fixed then that should be a top priority. Sending a message back and forgetting to take action will make things even worse than if you'd just ignored the message.
This should also be done within reason. If a tenant asks for an impossible upgrade, you can't respond in the affirmative. You can, however, politely give them the reasons why it won't work while assuring them that if things change, you'll get right to it.
Get a Property Manager to Help Out
Talking a good tenant into renewing a lease is always easier when you've been a good landlord. Making your rental units comfortable and responding to their feedback are crucial elements. Quick and convenient payment and renewal options also help a lot.
This can be overwhelming to do on your own, but having a property manager on call can help you sort out these and many other concerns. Did you know that there are different types of leases you can have your lessors sign? Find out how these are used to make landlords' lives easier and so much more by checking out our services and forming a great property management partnership.