Maximizing Tenant Retention: The Power of Lease Renewal Incentives

Maximizing Tenant Retention: The Power of Lease Renewal Incentives

What do all rental leases have in common? They all have expiry dates!

As a landlord, there are times when you can't wait for a rental lease to expire so that you can show a problem tenant the exit door. However, if you have good tenants, you want them to commit to lease renewals.

What if your best tenants are opting not to renew their leases? It's time to get creative! Offering attractive incentives is an effective way to get them to sign on the dotted line.

Read on to learn about some of the best lease rental lease incentives you can offer your tenants.

Free Month - Or Two

Rental prices are on the rise in most locations across the United States. In New Jersey, renters are parting with about $1,700 a month.

With the vast majority of people living paycheck to paycheck, offering your best tenants a free month or two as a lease renewal incentive will yield the outcome you wanted while giving the tenants a pleasant surprise.

Unless a tenant has to relocate for work or another essential reason, no one is going to easily turn down a rent-free month in return for renewing their rental lease.

Attractive Discounts on Utilities

In a tough economy, it's understandable if you cannot afford to offer tenants a free month to get them to renew their leases. Don't beat yourself because there's an incentive that comes close: a good discount!

Even a 20% refund of the security deposit will give the tenant something to think about. Alternatively, if the tenant pays for utilities like Wi-Fi or waste disposal, you can throw in a good discount there too!

The economy is tough for everyone, so most tenants would rather renew their lease and take advantage of the discounts.

Rental Policy Adjustments

You have a right to set tenant policies for your rental property, as long as they don't infringe on the tenant's rights.

Although your tenants agree to abide by those policies when they sign the lease agreement, it doesn't necessarily mean they like them. For example, if you have a no-pet policy in your rentals, there's a good chance some of your tenants would love to live with pets but can't because of the policy. Some might even be planning to move to rental with pet-friendly policies.

This is why offering policy adjustments as an incentive can lead to more lease renewals. You just need to do a survey and find out which policies your tenants would like to see changed.

Lease Renewals - Guaranteed!

When you have great tenants, you want them to renew their leases every time they expire. However, being a great landlord isn't enough to guarantee lease renewals. You need to incentivize them!

Do you know what else you can do to increase your lease renewal rate and maximize tenant retention? Let a professional property management company take over your duties. Tenants who live in a professionally managed rental are more likely to renew their leases.

This is where PMI Property Service steps in. We have a team of licensed professionals who will work to ensure your property and tenants get the best service.

Call us to learn more about our work!