Times are getting tough, especially for renters. According to CNN, roughly half of US tenants can't afford the cost of rent.
As such, your tenants are going to very carefully consider further lease renewals. It's not just the cost of rent that will factor into the equation, it will be the value they get for their money. How can you ensure they find value in your property, rather than in that of a competitor?
Landlords on the Long Island rental market, this is your guide on tenant retention tips. We'll discuss everything you need to know to secure a lease extension in Long Island, New York.
Lease Renewals Depend on Incentives
Getting a lease renewal is a lot like attracting tenants in a tough market. Your tenant is looking at all their options and weighing them against each other. Options that give the most bang for their buck win the race.
So, give them as much incentive to stay as you can. Try things like the following:
- Offering free parking or free Wi-Fi
- Covering certain utilities
- Giving free or reduced-cost parking
- Covering association dues
Oftentimes, it's the small things that make the biggest difference. Simply making it easier to pay rent through an online portal could be the tipping point.
Be Communicative
Lease renewals start months before the actual renewal occurs. Most contracts require tenants to give their answer within 60 days of the renewal, but you can start prodding them long before that.
Start 3 to 4 months before the renewal, if possible. Doing so plants the idea of the renewal in their mind so they give it plenty of consideration. It also helps to get a hint if they aren't planning to stay, and thus you have time to find replacement tenants.
Take Feedback
Importantly, be receptive to feedback. Make an earnest effort to know what things they didn't like and change them accordingly. A better experience for the next year could make them reconsider leaving.
It doesn't have to be something huge. Committing prompt maintenance, as one example, could change their mind.
Make Reasonable Rent Increases
Rent always goes up over time due to inflation, but median rent has increased exponentially in recent years. During the pandemic, it crossed over $2,000. Just think of how that would strain your budget, and you have a rough idea of how your tenants feel.
Be reasonable about how much you increase rent. Most tenants will understand if it's a 2 to 5% increase over the previous year, but not a 20% increase.
It doesn't matter if the law or the contract allows for a steep increase. Rent is expensive these days, so they are going to search elsewhere if it's beyond their budget
Get Property Management with PMI
Lease renewals go a lot smoother if you know what you're doing. Try incentivizing the tenant to stay, be communicative, and be receptive to feedback. Most importantly of all, keep your rent increases in check.
PMI Lighthouse in Long Island provides full-service property management to meet all your needs. Our testimonials speak for us: people praise us for professionalism, friendliness, and an overall great experience. Start towards being one of those happy customers with our free rental analysis.
