Create Your Lease Renewal Strategy
While your focus is on giving tenants what they want, being professional, and responding quickly to maintenance tickets, you might still see a parade of tenants leaving. A lease renewal strategy can help you keep tenancy rates up, and avoid losses.
Hopefully you already have some tools to help you know who is showing signs of leaving. Because once they’ve made the decision, it may be too late to react. Reaction in business is never good. Proactively keeping tenants is your foremost task and this post might be a big help.
Anyone who can reduce lease terminations for large property management companies is worth their weight in gold.
Fortunately, you have property management platforms such as ManageCasa to help you keep your tenants properly informed and feeling good.
Renewal Strategy Real Value: 2 Months Rent or 20% Rent Increase
Renewing leases is a whole lot cheaper and less time consuming that trying to acquire a new tenant. We’ve touched on the cost of tenant turnover, but for quick reminder, consider 1 month of lost rent, cost of ads, time to show the unit, clean the unit, renovate or fix, along with onboarding, and it could equal 2 months rent at least.
We’re not providing a form for you to fill out. We want you to think about your tenant retention strategy. Consider these points below, and then create an action plan that works for you and your staff. That’s a plan that will survive.
Continuous Support for Lease Renewal
Your ongoing tenant communications strategy starts right when they move in. If you continuously communicate and reinforce your unique value proposition, tenants get a laser clear idea of why they should stay put.
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And tenants do leave unwisely. They get seduced by other property managers and developments and about feeling better in a new location. Hopefully, when you get feedback, you’ll learn about which apartments/developments they feel are better than yours.
Strategy is a process of reinforcing all your efforts to impact the tenant
The Lease Renewal Strategy
As a Property Manager, your goal is perpetual lease renewal. Strategy means purpose for everything you do — to keep them feeling good and building intent to stay put. So when you’re thinking about how to get tenants to renew their leases, it’s best to have plan how everything points to that simple goal: lease renewal.
Be Systematic and Use Your Software
A good lease renewal strategy is simple and focused and that makes it easy to do. Here are the strategic touchpoints during the life of a tenant lease:
- rental ad writing and onboarding (first contact)
- unit showing (presenting value proposition in person)
- lease writing and presentation (esteem)
- transparency, consistency, honesty in communications (trust)
- maintenance tickets (safety and peace of mind)
- communication via phone, email or property management software (relations)
- ongoing communication about the value of living in your property (website/newsletter/emails)
- creating an enhancement to unit each year (incentives)
- responding to their intent/notice of terminating the lease (better offer)
All of the above points reinforce the theme of them staying as your tenant.
Big Picture Thinking Makes it Simple
This isn’t an automation process. You’re enhancing your communications/service in a human way with a deliberate message of “stay with us.”
What you say to tenants, do for them, how you express appreciation, and how you respond tells them whether they should stay.
Look at how you onboard, handle maintenance tasks, compose a newsletter, write your leases, and when you reach your tenants. How do your phrase your communications with them? Read those messages again months later like a writer would. Do your old messages sound like you appreciate them and want them to stay?
Even the tone of your voice has an impact. It shows your real intent whether you realize it or not. And for some tenants, these things have big emotional impact.
The Power to Stay or Leave
Some tenants leave because they feel that leaving is the only power they have. In your messaging, you can make them feel they have power to create the lifestyle and relationship with you that they prefer. They can vent their feelings constructively.
Speak about the property professionally and make it sound like a great place to live. Talk about it as though it’s the best launchpad for the rest of their lives. Tenants leave when they have a reason to leave – such as buying an overpriced house or condo, or being 10 miles closer to work, or some other place has better amenities.
Ask for feedback on how you can help them feel more comfortable in their apartment or building. Find out what disappointments, friction, and conflicts they have so you know how to make them feel empowered.
Marketing and Advertising Communications
Regardless of the media you use to promote your firm and properties, you have peak times of the year (spring/fall) where a lot of tenants will leave. That makes your losses worse.
In response, you’ll need to do your promotion beforehand, at the time they’re thinking about looking for a new condo or apartment rental.
What You Visualize Becomes Reality
When you think ahead at a continuous, positive relationships with a valued tenant, everything you do as a property manager or landlord will make business sense. Property management is tenant management.
It’s not enough though to visualize and hope all goes well. Examine all touchpoints, interactions, and the real value of your property to them, and you’ll find ways to keep them happy.
See also: Property Solution | How to Hire Maintenance Contractors | What is Proptech? | Tenant Screening | Improve Cash Flow | Cloud Property Management Solution | Best Multifamily Markets | Multifamily Investment | Multifamily Property Report | What Renters Want | How to Make Tenants Happy | Property Management Leads | Oakland Housing Market 2019 | San Francisco Housing Forecast | Furnished Apartments | Phoenix Housing Market Forecast | Las Vegas Housing Market Forecast | Property Management Companies | Property Management Apps | 2019 Rental Housing Market | Cloud Property Management Solution