The Top Lease Renewal Incentives Landlords Should Consider

Right now, the rental market is more competitive than it has ever been in the past. Even though there are opportunities to generate significant income and capital appreciation, it is important to consider lease renewal incentive ideas, particularly apartment rental incentives. What are a few leasing incentives for apartments that landlords need to consider? Learn more below, and do not hesitate to reach out to a commercial property management company that can help you maximize your occupancy rate.

Understand the Top Reasons Why Renters Leave

Before diving into a few of the top rental incentives you may want to consider, it is important to take a closer look at some of the most common reasons why renters decide to leave. They include:

• They Cannot Afford the Rent: Of course, one of the most common reasons why people leave is that they can no longer afford the rent. You need to make sure that you are charging the market rate for the property. If you can find someone else who can pay more money, you can maximize your cash flow.
• They Got Relocated Somewhere Else: Another common reason why renters leave is that they have been transferred somewhere else. Even though there is nothing you can do about this, it is important to provide exit surveys to figure out why your renters decide to leave.
• There Are Maintenance Problems: Some people decide to leave because there are maintenance problems. It is important for you to take care of your property. If renters feel like you are not taking care of it, they will probably go somewhere else.
• The Don’t Like the Neighbors: Finally, some renters might leave because they do not like their neighbors. You need to screen your renters accordingly to make sure your neighbors get along well with one another.

Ultimately, these are just a few of the many reasons why someone may decide to go somewhere else. By understanding the top reasons why renters leave, you might be able to be proactive, anticipating these changes and addressing them before they decide to sign another lease somewhere else.

How To Convince Them To Stay

By providing lease renewal incentives, you can increase your occupancy rate and reduce your turnover. Some of the lease renewal ideas you may want to consider include:

1. Provide New Appliances

You may want to provide your renters with incentives such as new appliances. If you provide residential property, such as apartment buildings, you may want to offer to replace the washer and dryer in the building if the renter is willing to renew his or her lease. If you provide commercial property, you might want to see if they can benefit from other new appliances, such as toasters or microwaves for their employees. You might even have extra ones laying around that you can provide for your renters. Some new appliances might be enough to convince people to stay.

2. Upgrade the Property

Upgrading the property is also a great way to convince someone to stick around. Regardless of whether you offer residential or commercial property, there are upgrades you can make that might encourage your renters to stay. For example, you may want to replace the flooring. Or, you may want to upgrade the lighting. You might want to identify upgrades that can help you save money on your utility bills while also enhancing the aesthetic appeal of the property.

3. Offer Cash Incentives

Another trick you may want to use to convince people to stay is a cash incentive. Money talks, and if you are willing to provide your renters with a bit of extra cash up front, they might be willing to sign another long-term lease. Sometimes, simply providing a gift card to a local business is enough. You might be able to partner with businesses in the local area. They might offer you gift cards in exchange for marketing opportunities. You may also want to provide a rebate on the security deposit. That way, your renters will have a bit of extra cash in the bank account that they can use to cover the cost of the move or renewal.

4. Partner With Local Companies To Reduce Expenses

Depending on the contract you have with your renters, you might be able to partner with local companies that can help them reduce their expenses. For example, your renters might have to pay for their own internet and cable. If you own multiple properties in the area, you might be able to bundle them together in exchange for a reduced rate on cable and internet. If you show that you are willing to help your renters and save money, they might renew the lease.

5. Offer Membership Packages To Local Services

Regardless of whether you offer residential or commercial property, you may want to offer membership packages for local services. For example, if there is a gym in the nearby area, you may want to offer your renters a membership package to the local gym. Or, if there is a social club, you may want to see if you can get a discount at the social club for your renters. This can make a local area more appealing, which might help you increase your retention rate.

6. Offer a Slew of Choices

If you can think outside the box, you may have an easier time convincing your renters to stay. For example, consider offering them a slew of choices. Think of this as a menu. Some of the options on the menu might include new paint for the walls, new appliances, new flooring, new windows, and new lighting. See what your renters would prefer. You place them in control, you show you are willing to go the extra mile, and through your flexibility, you show your renters that they are important to you.

7. Offer More Lease Terms

Finally, something as simple as offering more lease terms can be enough to help you increase your renewal rates. There are some people who might not want to be locked into a long-term contract. There are other people who might be looking for reduced rent in exchange for a longer lease. Why not offer both of these options? If you provide your renters with more choices, they won't feel like they are being trapped by your lease. If you show that you are flexible with your lease terms, you might be able to convince them to renew. This can save you a significant amount of time and money.

Work With a Professional Property Management Company

Ultimately, these are just a few of the top lease renewal incentive ideas that you may want to consider. Even though there are a lot of rental opportunities out there, there are also ways you can separate yourself from the other buildings in your area. Regardless of whether you provide residential or commercial property, you should consider reaching out to a professional who can help you review your situation, assess your opportunities, and find the best option for you to maximize your occupancy rate. That way, you can focus on what you do best, saving time while relying on the professional experience of a property management firm.