After years of soaring rents and high demand, Reno is currently experiencing a rental vacancy rate of over 8%. That's well above the 3% average enjoyed by this metro up until now.
This means retaining tenants is a top priority for landlords across the city, especially as new construction projects come to fruition.
As a landlord, you need a plan to ensure your tenants stay in place for as long as possible. Keep reading for a snapshot of the most effective lease renewal strategies.
Advance Lease Renewal Strategies
Nobody wants to offer lease renewal to bad tenants, so it's important to make sure you get the best tenants from the start. Some ways to do this include:
Setting a Fair Rental Price
You should always keep your ROI in mind when setting your rent, but a fair price will help keep your tenants in place for longer.
Setting a fair price at the outset helps attract more potential tenants to your property. Tenants who feel they're getting a good deal are more likely to stay put when the time comes to renew their lease.
Whether you're targeting residential or commercial tenants, it's vital to conduct thorough tenant screenings before signing a lease. These techniques ensure you place tenants who can afford to pay the rent for years to come.
A thorough screening should include a credit check, background check, financial statements, and references. Although the Fair Housing Act forbids discrimination on many grounds, you can ask potential residential tenants for proof of employment.
Foster Good Tenant Relationships
As a landlord, you must have a good relationship with the people renting your properties if you want them to renew their lease. Keep open lines of communication to avoid misunderstandings and ill feelings.
Always respect your tenant's privacy and treat them with respect. Conduct property inspections at convenient times, and never stop by unannounced.
Address maintenance requests promptly and keep up with routine repairs. An online tenant portal will help streamline maintenance requests and facilitate easy rent payments.
Sometimes tenants' circumstances change, and they experience temporary difficulties paying their rent. If they have valid reasons for this, give them a little leeway.
This consideration can make all the difference when they consider lease renewal.
Offer Incentives for Lease Renewals
A more competitive rental market means you need to get creative if you want to keep your tenants in place. Some effective incentives to encourage tenant lease renewals include offering:
- A discount on one month's rent
- Including a utility bill in the rent
- Upgrading your property
You should give your tenants at least sixty days' notice to take you up on your offer. This gives you plenty of time to find someone else if they don't take you up on your offer.
Hire a Property Manager for Your Rental Property
A property management firm will take care of all the above lease renewal strategies on your behalf. In this way, they ensure you find the best tenants for your residential or commercial property and keep them in place.
If you're eager to maximize your Reno investment properties, get in touch to schedule a consultation with PMI Reno and discuss your needs today.