Despite Salt Lake City emerging as the most competitive large rental market in the West, tenants will not hesitate to leave their current rental if they are unhappy. While you could place new tenants, this increases your costs and risks as a landlord.
The best option is to convince a quality tenant to stay and renew their lease. Follow these tips for improving the rate of your lease renewals.
1. Reach Out Early
One of the easiest methods for getting your tenants to renew is simply asking them. Communicate with your tenants early. Give them plenty of time to consider their options and sign the lease. This also gives the tenant ample time to prepare for a rental increase.
If you work with a leasing management service, you can have them do the tenant communication for you.
2. Make It Easy to Renew
One method for convincing tenants to renew is to make it easier for them to do so. Working with a property management company can simplify the process for you. They can provide your tenants with an online portal.
Within that portal, your tenants can review the new lease documents and electronically sign them. They can do this at any time and from anywhere.
3. Consider Allowing Pets
If you do not currently allow pets in your rental, consider changing this position at the lease renewal. Doing so will allow you to see that your current tenants are responsible before agreeing to them having a pet. Also, by allowing pets, a tenant who may leave because they want a pet will be more likely to stay.
Remember to update the lease to reflect the new terms for allowing pets in your rental. These could include an additional deposit, a pet approval process, or monthly pet rent.
4. Make Property Improvements
One reason tenants leave their current rental is that they can get more for their money elsewhere. Improving your rental property can improve your tenant retention. You should have a property maintenance and improvement plan in place anyway.
If you plan your property improvement around the lease renewal, it can convince your tenants to stay. If your tenant decides to leave anyway, you already have property improvements planned for the vacant property.
5. Be More Flexible
Renewing a tenant's lease allows the terms to change. However, you should do so thoughtfully. If you change the terms too much, you may turn the tenant off to renewing the lease.
One option is to welcome the tenant's negotiation offer. Not all tenants will try to negotiate, but if they do, participate in the conversation.
Perhaps you can convince the tenant to pay the increased rent by agreeing to provide additional amenities.
Increase Your Lease Renewals
By taking these steps, you can increase your lease renewal rate. Start by reaching out early and simply asking the tenant about renewing. Make the renewal process easy by allowing them to renew online.
Consider offering the tenant additional concessions or amenities. If the tenant makes specific requests, don't be afraid to negotiate.
Working with PMI Northern Utah can help you increase your lease renewals. Our experienced property managers and online tenant portal will proactively communicate with tenants.
Increase your tenant lease renewal rate by working with PMI Northern Utah.
