According to the data collected from the Consumer Price Index Survey from last year, nearly 60% of all leases are for a one-year period.
When the 12-month period ends, the best scenario for a landlord or property manager is for the tenant to renew the lease.
A lease renewal gives the landlord a consistent and stable income stream. It also removes the costs associated with preparing the property for new tenants.
Using the right strategies will lead to more lease renewals from your tenants. Keep reading to learn five lease renewal strategies landlords can use in Teaneck, New Jersey.
1. Provide a Positive Rental Experience
One of the best ways to ensure an extension of a lease agreement is to provide your tenants with an unusually good rental experience.
Be responsive to their questions. Promptly address requests for repairs or maintenance issues. Pay attention to feedback on the condition of the property.
Make it easy to pay rent by offering convenient rent payment methods.
2. Simplify the Process
Take advantage of the latest technology to make the lease renewal process easy and convenient. Use a program that enables you to send out a lease renewal letter electronically.
This will allow your tenants to quickly and easily respond to the lease renewal notice and sign it from anywhere on any device.
3. Be Thoughtful About Increasing Rent
Renters choose not to renew a lease when the rent becomes unaffordable. If you plan to increase the monthly rent upon renewal, be considerate.
Is it vital that you raise the rent? Have your taxes, insurance, and maintenance costs increased? Be ready to explain why you're raising the rent.
Raising it too much could increase the chance that the tenant will not renew. Hiking the rent more than the market average could be the tipping point.
Try to keep an increase in the 3 to 5% range to prevent the renters from leaving. Over the last year, the average rent increase was 5.8%.
4. Make Necessary Improvements
Does the property need some updating? Consider making improvements like new appliances, a fresh coat of paint, or adding new features that would make the property more appealing.
Adding things like an alarm system, a fire pit, and ceiling fans in the living areas or bedrooms can persuade renters to stick around and extend the lease.
5. Get Tenant Feedback
Good communication with your tenants will go a long way. Seek feedback in an effort to improve the rental experience.
Having an idea of how your renters feel about the way things are going helps you predict whether or not they will renew the lease.
Getting feedback allows you to make the necessary changes to keep tenants happy.
Landlord Goals: Lease Renewals
When you own investment properties, securing lease renewals with current tenants is most profitable.
Do you know who can help you manage your properties and elevate your lease renewal strategy? We at PMI North Jersey are dedicated to providing our clients with excellent customer service and maximizing owner profitability.
Contact us today through our website or by calling 201.201.0180 to schedule a consultation.
