A high turnover rate is less than ideal for property managers. Not only does this look bad to prospective renters, but it is also a hassle to continuously move residents in and out, prepare new paperwork, get apartments move-in ready again, etc. Not to mention, a lease renewal is guaranteed money in your pocket and stability for your building and business.
Since living arrangements are highly personal and depend on a number of deciding factors for each individual, you cannot expect to control every situation. Life events, financial changes, job transfers, and other outside influences may cause a renter to reevaluate their living situation. However, for those able to decide if they want to stay or go, there are ways you can encourage residents to stick around.
There are few things today that rival great customer service. Each day is an opportunity to encourage a lease renewal. By building real relationships with residents, you build trust and credibility. Respond to questions and concerns quickly and follow through on issues until they are completely resolved. Letting problems linger or ignoring the concerns and feelings of your residents will often result in renters feeling insecure about their home and even the building they live in. Safety, security, and comfort are non-negotiable factors for nearly everyone when it comes to their home life. Make it known that you are willing and available to tend to their needs.
Occasionally, property management companies are able to offer incentives like a free month’s rent or a discount if residents pay for the year up front. This can persuade current renters to renew their lease rather than look for other options. If you aren’t able to offer this kind of discount, there are other incentives you can use to let residents know you appreciate their business. Setting an early renewal date and offering gift cards to local institutions, cash back, or discounted fees like parking or other vouchers to renters who renew by the deadline can be encouraging. Small gestures can go a long way in building trust and maintaining it.
With technology today, businesses of all kinds have little reason to do things the hard way. This means having lease documents ready to send, information conveniently available online, and communication channels open 24/7. Offer price transparency, either through an online resident portal, your website, or in your newsletter. Make rent increases, lease changes, and other information available long before renewal time comes. This keeps residents in the know about what to expect and gives them ample time to plan or voice concerns before their lease is up.
Steady, happy residents will help your business and your reputation grow. Treat every day as an opportunity to solidify another lease renewal.