Fewer things make a landlord sadder than when a great tenant decides not to renew a rental lease. It means you have to get down to the grind of marketing the soon-to-be vacant rental and making do with the possibility that the new tenant might not be as great.
It's possible to change the mind of the leaving tenant and make them stay. But why should you incur additional costs trying to convince a tenant to stay? Isn't it more economical to let them leave and find a new tenant?
Well, giving incentives for lease renewals is good for your rental business. Read on to learn why they should be in your budget.
Maintain a High Occupancy Rate
The goal of every landlord is to keep their rental properties fully occupied at all times. Whether it's a single-family home or a multi-unit apartment complex, its financial performance directly depends on occupancy.
However, keeping a property occupied throughout the year can be easier said than done. So, if you have already done the hard work and filled the property with tenants, you want it to remain occupied.
Lease renewal incentives go a long way in helping you achieve that goal. When a rental lease expires, an attractive incentive, like a rent discount, can encourage a tenant who had otherwise decided to move to stay another year.
Increased Tenant Satisfaction
Building strong relationships with your tenants is key to running a successful rental business. Like every relationship, you must put effort into making your tenants happier.
Doing the basics, such as responding to complaints quickly and keeping the property well-maintained, goes a long way, but it's barely enough. You need to do more, and that's where renewal incentives come in handy.
Incentivizing a tenant to renew a lease shows them that you care about them. You might as well have gotten a new tenant as soon as they moved out, but going out of your way to convince them to stay could mean a lot to them.
Greater tenant satisfaction increases retention and can encourage tenants to treat your property with the care it deserves.
Keep Your Rental Income Steady
What's better than a rental income? A steady rental income!
While a high occupancy rate is welcome, it won't count for much if some of your tenants aren't paying their rent steadily. If you have a good tenant who always pays rent on time, you want to hold on to them for as long as possible. You may replace them easily, but how sure are you that the new tenant will be a reliable rent payer?
Give that reliable tenant a nice incentive to renew their lease and enjoy another year of steady rent payments.
Prioritize Lease Renewals
A high rate of lease renewals is every landlord's dream. The good news is you can make it happen, and it begins by embracing the value of offering renewal incentives.
At PMI Gold Coast Properties, we can help you build a lease renewal strategy that works for your Long Island, NY, property. If you'd like us to take over the management of the property, we can do that too! As part of the PMI franchise network, we're able to replicate its two-decade experience in our local offerings.
Call us to speak to a property management expert.
