For many landlords, long-term rentals are an optimal situation. As property managers in Las Vegas agree, long-term rentals are ideal for numerous reasons. Long-term rentals provide a predictable source of income for landlords, and if you get the right tenant, you know you’ll have a trustworthy and responsible person renting your home. Just as landlords can benefit from long-term rentals, they must keep renters happy to increase renewals and reduce turnover.
Why are Renewals Important?
Vacancy is one of the most significant financial risks from rentals that landlords face. Vacancies can arise when a tenant moves out before they intend to or after they’ve given proper notice. Either way, if your property sits vacant after the current tenant leaves, you won’t be collecting rent until you fill the rental property again. While having some downtime between tenants is inevitable, you don’t want too much time to pass, as the inevitable lost revenue will start to add up quickly.
How to Increase Renewal Rates
Tenants have the opportunity to extend their rentals when their current lease is up. However, landlords who want their current tenants to stay should start taking action before the lease ends to get their tenants to renew, including:
- Provide customer service
- Ask for feedback
- Offer a renewal incentive
- Raise rent fairly
- Add value
- Allow pets
- Clean the rental
- Reserve parking spaces
Customer service is essential for a successful landlord-tenant relationship. Landlords can forget that their tenants are also their customers, which means they can lose their customers’ business if they don’t address problems and concerns in a timely fashion. If tenants find that they need to wait a long time to have things in their rental fixed or if they get a slow response time from the landlord, they are more likely to become frustrated and move out. Landlords who are pleasant and responsive have a better chance of their tenants renewing their leases.
Maintaining a dialogue is also essential for landlords to ensure their tenants are happy. While landlords shouldn’t be overbearing, they can periodically check in with their tenants to see how things are going and if the tenant needs anything. When tenants move out, a Las Vegas property management company suggests that landlords ask a series of exit questions, including what the tenant liked the most and the least when they lived at the property. Landlords can also ask their tenants how they viewed their interactions with them or with property managers if the rental was handled through a company. Landlords can also ask what changes their tenants recommend making, and their reasons for moving out. If the tenant is moving due to dissatisfaction with the rental, landlords may ask if there is anything that would have convinced them to stay.
Offering incentives for tenants to renew a lease is another effective way to increase renewals. Incentives can take many forms, including offering a discount for the first month’s rent, giving the tenant a gift card or cash, or providing new appliances or electronics such as a TV. Landlords should remember that tenants often decide whether to move out or continue staying in a place when their lease is up. Throwing in an incentive to get them to stay can sway them towards renewing their lease if they are debating whether to continue staying in their current place or moving elsewhere.
Another topic that may come up for renters is a rent increase. While many landlords raise their tenants’ rent to keep up with the current market, they should raise rents properly to keep their tenants from being discouraged and even priced out of living in the rental. If they decide to raise the rent, landlords should do so gradually at the end of each lease term rather than dramatically increasing the rent less often. Tenants are more likely to be okay with a smaller increase in their rent rather than a significant increase. Landlords should also be aware that while rent raises are normal for rental properties, they should avoid raising the rent on a tenant if the current market conditions do not support a rise in rental rates.
Adding something of value for the tenant during their stay at a rental is another incentive to get them to stay longer and renew their lease. Landlords can make some simple but effective upgrades to the property for their tenants. Adding convenience, replacing old floors and appliances, or making aesthetic improvements can all go a long way in making a tenant feeling happier and more at home in their rental. That, in turn, will make them more inclined to stay.
Although it may not seem like a big deal, accepting pets in a rental unit can be a great way to attract long-term tenants. Renewal rates tend to be higher among people who allow pets in their rentals, as there are not as many rental options available for pet owners compared to people who do not have pets. Pets also help people feel more at home in a place and generally help make their owners’ lives more stable.
Even though they may try to keep the rental clean independently, tenants will appreciate a landlord’s offer to deep clean the rental if they want to stay. In fact, many property owners provide a thorough carpet cleaning for their tenants each year if their tenants decide to renew their lease. While carpet cleaning is an excellent place to start, some landlords go the extra mile by offering to clean the entire house or apartment. Although it may cost a bit more for the landlord, it also translates to greater satisfaction for the tenant, making them more likely to stay.
Offer Property Maintenance
Property maintenance is essential for tenants. When tenants move in, they should be provided with all the contact information for local professionals, including the best property management in Las Vegas, contractors, plumbers, and emergency maintenance personnel. Property management companies may also offer 24/7 property maintenance so that renters can get assistance for a problem right away if they need help after regular business hours. Landlords should also go over the basics of property maintenance with their tenants to know what qualifies as a minor issue versus a more significant one.
Should Landlords Ever Not Renew a Lease?
While many landlords welcome the opportunity to renew leases with good tenants, there may also be times when renewing a lease is not a good idea. If the tenants don’t pay rent on time, they ruin the property, they do not report maintenance issues, they don’t abide by the lease terms, or they don’t follow standards for cleanliness, it’s worth finding a new tenant to rent the place. Landlords should also consider that those issues may eventually result in eviction proceedings and other legal battles, which can cost quite a bit of time and money to resolve.
If you’re looking for “property managers near me” to help renew your rental leases, or if you’re a tenant wondering whether or not to stay, don’t hesitate to contact The Mor Group, a Las Vegas property management company, for assistance.
