As one of the most critical elements of business development for property management companies, lease renewals require a significant amount of time and attention. Implementing lease renewal procedures that are professional and user-friendly can ease the process and ensure both parties (tenants and leasing agents) are able to communicate properly with one another.
Here are three of the most effective practices for navigating lease renewals:
Streamline the lease renewal process.
There’s a great value to streamlining the lease renewal process so that tenants can easily complete required paperwork when the time comes. If you don’t currently have a property management software, it may be time to invest in one that allows for more efficient lease renewal. Advanced property management software has many helpful features, such as allowing tenant signatures on new leases and assessing tenant renewal eligibility. Most notably, it allows for quicker communication between property managers and tenants, as well as a reliable record of conversations for both parties.
Consider flat renewal fees.
While it’s common for property managers to increase rent rates every year, it’s becoming more prevalent for companies to implement flat renewal fees. This can be a useful incentive for retaining current tenants who can’t afford higher rates elsewhere, showing that you care about keeping them at your property. Over time, you may discover that holding off on rent increases and implementing a flat fee renewal offer is one of the best strategies for keeping turnover low.
Ask for tenant feedback.
Reaching out to residents well in advance of their renewal date can be a powerful way to show them how much they’re valued. Getting a sense of whether a tenant is interested in staying or leaving can provide an opportunity to discuss their concerns and provide support if necessary. Whether a tenant is choosing to stay at your property or leave, it’s important to acquire feedback about their experience. If a tenant doesn’t intend to stay, be sure to ask them why they’ve made that decision. For example, they may report that their maintenance requests weren’t met promptly or that they didn’t feel safe on the property. As you receive feedback, consider making an attempt to address your tenants’ grievances so that they consider renewing their lease.
With these strategies, you can proactively take steps to minimize tenant turnover and promote greater productivity among your leasing agents.
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