In 2024, roughly a third of all renters renewed their leases. At most, rentals were vacant for about 39 days. The majority of apartments were occupied throughout the year, though.
The key to keeping your rentals full is lease renewals. Why search for a new tenant when you can keep a reliable one? However, some landlords may wonder how they can keep these good tenants around when their lease ends.
Here are four secrets to land a rental contract extension or renewal.
1. Maintain Open and Transparent Communication
The first tip is to maintain open communication with your tenants. Even though all transactions can happen over the internet or through an app, human interaction is key.
Have some way for tenants to notify you of problems with the property. Let them ask questions if they plan to make any minor changes or have a problem with paying rent. Tenants highly favor landlords they can talk with who respond with haste.
2. Offer Incentives for Lease Agreement Renewal
Some tenants will renew their leases simply because it's convenient for them to stay in one place. Others may require some persuasion, especially if they get benefits for moving into a new place.
As the landlord, you can offer incentives for lease agreement renewal. These can include anything from discounted parking, a discounted first month's rent, or more flexible lease terms.
3. Ensure Competitive Rental Rates
Landlords who charge too much rent will find tenants leaving to lease at more affordable options. It's important to ensure that your rents are competitive but not overpriced.
When you calculate your rent, you should take into account the following:
- Amenities offered
- Cost of utilities
- Desirable location
- Size of rental unit
- Furniture included or not
A property management company can calculate the optimized rental value for your property and even determine your cash flow from that value.
4. Build Strong Tenant Relationships
A tenant lease extension is more likely to happen if the tenant enjoys the place they live. It's the landlord's responsibility to provide a dwelling fit to live in. They can go even further by providing minor changes or repairs that a tenant requests.
For example, a landlord should replace locks that stop working or get stuck. They should make sure the water, heating, and other utilities function as expected.
On the other side, the landlord must communicate if the tenant does something that isn't allowed. Eviction should always be a last resort as long as a problem is settled.
Guarantee Those Lease Renewals in Orlando, FL
A landlord who doesn't prioritize lease renewals will find themselves bleeding money when a rental unit stays empty for a month or more. Instead of dealing with that, you should prioritize connecting to your tenants and providing a safe and comfortable home. You may find them recommending your properties to their friends and family.
Wilson Management Group is a premier residential property management company based out of Orlando. We have over three decades of experience and have 24-hour availability for emergencies. Reach out today with any questions and to get a quote.
