There are more consumers switching to renting than buying. To meet the demands, more apartment and rental communities are popping up, which means the competition is becoming fierce. To stay thriving in today’s economy, your property needs to stand out among the rest not only to new renters, but also to the renters you already have. Renters who aren’t satisfied or aren’t enticed to stay for another lease term know there are plenty of communities out there to choose from. Because it is cheaper to keep the residents you have, it’s time to put aside some funds in the budget to keep your current tenants signing on for another term.
Offer Cash Off Rent
There is nothing more enticing to a renter than a cheaper rental rate. You don’t have to discount their entire lease term, but offering a free month of rent for renewing a year-long lease could certainly encourage them to renew their lease rather than move on to another property. Even offering 50 percent or 20 percent off rent will still be cheaper than the cost of having a vacant unit that needs to be filled.
Give a Cash Reward
Cash rewards, which give tenants the choice of how they want to spend their money, are also good incentives for keeping tenants put. Your cash reward can be a certain amount based on the lease renewal. For example, $100 for a year-long lease or $50 for a six month lease. Offering cash means the tenant gets paid for renewing their lease – and cash is always a powerful incentive.
Offer Appliances or Gadgets
If you don’t want to offer cash or rental discounts, you can give gifts to your tenants. Consider upgrading an appliance to a new one in a tenant’s unit for renewing their lease – such as a new range, microwave or washer and dryer. Gadgets like an iPod or television could also be good incentives for long-term lease renewals. While you might spend $200 on a gift, you would certainly spend more trying to fill a vacant unit.
Consider Your Tenants’ Age
The age of your tenants should dictate the type of incentive you use. Not all age ranges enjoy the latest gadgets or appreciate a discount on the rent. If you cater mostly to younger renters, cash or gadgets are more likely to influence a renewal than a discount on rent or a new appliance. If your tenants are more middle-age an appliance might seem better than a gadget.
To keep everyone satisfied, consider giving tenants a choice in which incentive they receive. Such as $300 off rent or a new appliance upgrade for a long-term lease renewal. Regardless of what you offer, make sure you offer something. By giving tenants a reason to renew their lease they are more likely to stay at your property than look and see what the competition has to offer.