Is your rental property standing empty with no tenants? In Q4 of 2020, rental property vacancies in the US were over 5%.
Having a vacant investment property is bad for several reasons. First, you're not generating an income while it stands empty. Second, your property is at risk of damage or even squatters moving in.
When you find tenants you love who treat your properties respectfully, you want to do everything possible to get them to sign their lease renewals. Unfortunately, you'll have to start from the drawing board again if they choose not to.
Finding great tenants takes work, so if you want to increase the chances of lease renewals, keep reading. Here are several ways to get your tenants to sign on for another year.
Send Reminders
If your tenants don't know their lease is coming up for renewal, they can't sign the new lease. This is why sending out a reminder a few weeks or months before it's due is so important.
This way, your tenants can rest assured that they have a place to live for the foreseeable future, and you can be happy knowing you're keeping your great tenant.
Make Renewing Easy
Studies show that some tenants prefer to sign their lease electronically instead of in person. For this reason, it is important to offer your tenants the option to sign their lease online and the opportunity to sign it in person.
The easier you make lease renewals, the better your chance of tenants signing a new lease. Having good tenant communication helps.
Offer Low Rent Increases
While rent should increase annually, you don't have to ask for a full 10% increase as the landlord. Assuring tenants that rent increases will be, at most, a certain percentage, such as 7-8%, can help them decide to renew. You can also offer a rental payment grace period if your tenant is struggling.
Keep Up With Rental Property Maintenance
If you pay attention to property maintenance, your tenant will likely want to renew their lease agreement. When things stop working, tenants look to the landlord to make repairs and keep up with maintenance. If you're not holding up your end of the bargain, your tenants will quickly start looking for a new place to live that isn't being left to fall apart.
Use a Property Management Company
Finally, using a property management company in Schaumburg, IL, is a great way to get lease renewals from your tenants. A good property manager will take over all duties regarding leases, allowing you to put your focus on more important things in your life.
Hiring a property management company can help you feel more at ease knowing reminders are being sent, and everything is being taken care of.
Keeping Your Great Tenants for Longer
Lease renewals are essential for anyone who owns investment properties because they help guarantee income for the next twelve months.
If you send out lease renewal reminders, keep up with property maintenance, and offer low rental increases, you stand a better chance of your tenant renewing their lease. Otherwise, you can hire the services of a top-notch property management company.
If you prefer to enlist the services of professionals, get in touch with us today. At PMI Chi-Town, we put your interests first and offer free property rental analyses.
