Hudson Valley has fewer renters than average, which can create a challenge for rental property investors. How can you reduce your vacancy rates without a competitive rental market?
The key is to focus on the tenants you already have. While some may move on to a new city or homeownership, many intend to keep renting in Hudson Valley. If these tenants are still looking to move, it's time to assess your lease renewal strategies.
Today, we're going to talk about some of the strategies you may be overlooking that can improve tenant retention.
Read on for five lease renewal strategies to get tenants to stick around for another year.
1. Set a Lease Renewal Due Date
For starters, you need to get tenants thinking about renewing their lease at a reasonable time. Not only does this put mild pressure on them to make a decision but it gives you time to list units that will soon be vacant. Consider making the lease renewal due date a minimum of one month before the lease is up.
2. Freeze Rent Increases for Renewed Leases
Hudson Valley renters are facing some serious price increases. One of the biggest reasons why tenants shop around for rentals is to find the best price. By offering tenants who renew their lease a rental freeze for at least one year, you can make yourself more competitive and appealing.
3. Make Annual Property Upgrades
Do you typically only upgrade rental units when they're empty? That means that your current tenants may be living with old carpeting, outdated appliances, or peeling paint. Show your current tenants that you care about their quality of living by making annual property upgrades around the time that lease renewals are due.
4. Practice Flexibility
If you have tenants who are debating moving to a new rental, find out why. It's possible that your current lease doesn't give them the flexibility they need. Whenever possible, make reasonable concessions (e.g., allowing a small pet in exchange for a fee) that will encourage tenants to stay where they are.
5. Improve Tenant Relations
If you have a high tenant turnover rate, you can't expect an end-of-lease strategy to do the trick. Chances are, you need to improve your tenant relations year-round so that tenants have a more positive experience in your rental. Working with property managers can lead to better communication, more reliable maintenance, and improved tenant relations.
Call PMI Hudson for More Lease Renewal Strategies
In cities with a below-average renter population, lease renewal is a must. Retaining your current tenants costs less and provides more security than trying to find new renters every single year. If you're struggling with a high tenant turnover rate, it's time to improve your lease renewal strategies and build better relationships with your tenants all year long.
PMI Hudson is here to help. Our property management services are unparalleled, allowing property owners to customize their property management package to get exactly the help they need. To learn more about how we can help, contact us today.