Lease renewals are a critical part of owning an investment property. Not only do vacancies mean lost income, but finding new tenants is a costly, time-consuming, and risky prospect.
Kansas City is a top rental market, but that doesn't mean your work ends once you've found good tenants for your rental home. Keeping your tenants in place takes commitment and hard work.
Keep reading for helpful tips on how to retain tenants.
Understand the Process for Lease Renewals
You must understand how lease renewals work if you want to get the most out of your investment property. Lease renewals usually occur toward the end of tenants' lease terms.
Typically, landlords or property managers reach out to the tenants between 60 and 90 days before a lease expires to discuss their renewal options.
During these interactions, it's imperative to ensure both parties are satisfied with the terms of the renewed lease. The most important thing to consider is your rental price.
Tenants won't renew their leases unless they believe your prices are fair. You should carry out a rental analysis using similar properties in your neighborhood to ensure this is the case.
Several other factors can impact whether your tenants renew their lease. You'll need to work on many of them for the duration of the lease.
Pay attention to:
Tenant Communications
Maintaining open communication with tenants helps foster good relations with them. Check-in on them regularly, inquire about their concerns, and update them on relevant news related to your property.
Maintenance and Improvements
Providing a habitable property is a legal requirement, but ongoing routine maintenance, prompt repairs, and desired improvements help increase your tenants' satisfaction.
Ask your tenants about improvements they'd enjoy. Some ideas include energy-saving appliances to cut costs, security systems for enhanced safety, or outdoor entertainment features.
All these upgrades will increase the value of your property and increase rental income.
Property Inspections
Routine property inspections aren't only intended to check if your tenants are complying with their lease. They're also opportunities for cordial interactions.
During property inspections, you can check for any maintenance issues tenants may have overlooked. You can also attend to small things like changing your HVAC filters.
When your tenants know you're a committed landlord, they're more likely to renew their leases.
Incentivize Lease Renewals
Working on positive tenant relationships will help increase lease renewals, but you can take things a step further. Consider offering your tenants a thank-you gift for renewing their lease.
This could be:
- A meal voucher at a local restaurant
- A gym membership
- A discount on their rent for a few months
A token of appreciation could be the one thing that puts the odds in your favor if your tenants are considering a move.
Hire a Kansas City Property Manager
Encouraging lease renewals involves a lot of ongoing work. Not all landlords have the time for this.
Hiring an experienced property manager is the best way to ensure you enjoy ongoing rental income from your tenants in Kansas City. Call PMI Fountain City today for expert assistance with every aspect of property management.
