Moving is such a hassle, both for renters and their landlords. It's no wonder two-thirds of US renters prefer renewing their leases. As a landlord, generating more lease renewals can help you avoid the cost of vacant units.
Not sure how to increase tenant retention? Read on for the strategies you can use to boost your occupancy rate in 2024!
Limit Rental Lease Increases
You'll scare tenants away if you rush to increase their rent. About one in four renters are negotiating lower prices when it's time to renew. If tenants are willing to negotiate, you can retain them for another leasing cycle.
Remain honest and explain why you need to increase the rental rate. For example:
- Higher taxes
- Added amenities
- Extra maintenance costs
Avoid going too high above market trends in Dallas. Don't increase the rent solely because you want to generate more rental income. Otherwise, your renters will look for housing elsewhere.
Ask your renters what they need to feel comfortable renewing. For example, they may ask for a different leasing option (such as a monthly or two-year lease). Perhaps they want certain upgrades or amenities.
Offer Tenant Incentives
Encourage renters to renew their leases by offering incentives. Listen to their feedback. Choose incentives they've already asked for, like:
- Discounting lease renewal fees
- Rent credit (or a month free)
- Gift cards to local stores and restaurants
- Property upgrades
Upgrades can include new floors, energy-efficient windows, or new kitchen appliances. These upgrades will boost the property's value. If tenants do leave, these upgrades could make the property more attractive to future renters.
Prioritize Maintenance
Your tenants won't want to stay if the rental property is crumbling around them. Prioritize completing property maintenance as soon as possible. Delays could encourage renters to take legal action or break their lease.
Maintaining your Dallas rental property can help you avoid more costly renovations in the future. Meanwhile, tenants will recognize you care about their living experience. They may decide to renew knowing they can depend on you.
Streamline Rental Lease Renewals
Make the renewal process as easy as possible. Send renters a notice two to three months in advance. Give them time to review their options or ask questions.
Streamline this process using an online tenant portal. Tenants won't have to visit in person or scan documents. Instead, they can sign the agreement online, saving you time and money in the process.
Hire a Property Management Company
Hire a property management company to improve your tenant retention rate. Their proven strategies can save you valuable time and unnecessary stress. Their understanding of the Dallas real estate market can give you a competitive advantage.
Encourage Lease Renewals in Dallas
Generating more lease renewals will ensure your occupancy rate rises. Use these effective strategies to retain your best tenants. Otherwise, outsource to a property management company.
Our team at Evernest Dallas manages over 14,000 properties. About 74% of our renters renew their leases. Our dedicated staff will use proven strategies to maximize the value of your rental property.
Rely on our years of industry experience. Contact us to improve your tenant retention rate!
