What Are The Benefits Of Long-Term Tenants and How To Encourage Lease Renewals?
Whether you’re a landlord or a real estate agent, you benefit when you can keep your tenant base consistent and full. The best way to do this is by keeping your occupants for longer periods of time. Here are the benefits of long-term tenants and how to encourage lease renewals.
The Benefits Of Long-Term Tenants
Long-term tenants provide valuable amenities to landlords. Here are a few advantages that often come with keeping the same occupants:
- You save time & money: You won’t have to spend as much money or time on property marketing, screening tenants, or tenant turnover.
- Greater returns: Long-term tenants are likely to pay their rent on time, every time. This decreases costs for you, such as eviction or small claims court fees.
- Better tenant retention: Good tenants who are happy with their rental units are likely to stay.
- Lower vacancy rates: With fewer turnovers, your units will have shorter vacancy periods and attract new renters quickly.
- You can make more money: At the same time, you get to keep your rental rates up and take advantage of increases in the rental market.
- Stable tenants: The longer your tenant has been staying in the same unit, the more stable the tenant is likely to be.
- Better references: Long-term tenants provide great references whenever it’s time to rent out a new unit.
- Less wear & tear: Using the same unit over and over again decreases the wear & tear on your rental property.
- Smoother Tenant On-board: Since everyone involved in the rental process already knows the tenant this make it easier to onboard them.
How to Encourage Tenants to Renew Their Lease
It’s important to take the right steps to ensure tenants will choose to renew their lease. Here are a few tips for increasing leases renewals:
- Reward loyalty: Offer your long-term tenants a reward for renewing their lease, such as a month’s rent-free or a discount on the next month’s rent.
- Provide incentives: Additional services, appliances, or bonuses can incentivize tenants to stay.
- Maintain the unit: Regular maintenance and improvements show tenants that you care about their stay.
- Make sure the unit is up to code: If the tenant is unsure about safety or living standards, they may be less likely to renew their lease.
- Be flexible: Sometimes offering to lock in certain rates for a 6-12 month period can entice long-term tenants to stay.
- Have your tenants sign a lease agreement: A lease agreement is important to both the tenant and the landlord. Make sure that all parties involved understand their rights.
- Be accommodating: If your tenant has a request, it’s in your best interest to accommodate them if you can.
- Let tenants know it pays off to renew their lease: Tell your tenants about some of the long-term benefits they can get if they renew their lease.
Conclusion
Finding great tenants is essential for landlords and real estate agents so long-term tenants are an invaluable asset. The Benefits of Long-term Tenants and How To Encourage Lease Renewals can be a huge incentive for landlords and help keep tenants happy. By understanding the benefits of long-term tenants and how to encourage them to renew their lease, landlords can make sure their rental properties stay full and tenants remain content.