A new law in Colorado states that landlords are to offer lease renewals to all tenants unless they have a good reason not to. However, not all tenants will take their landlords up on this. Why is that?
Having a tenant leave can be a huge problem, especially if the rental market is slow. It's always best to have a long-term tenant if possible, but how can you keep them?
We're here with a few lease renewal strategies and tenant retention tips that can help. Read on to learn more.
Communicate Early
It is always better to communicate with your tenants about potential lease renewals as early as possible. They may not be keeping track of time. When the notification about renewals comes up, they may panic and decide what to do on the spot.
Give them ample time to decide what they're doing. Make sure you tell them about your plans for renewal (rent changes, for example) and leave the lease open for negotiation so they have the opportunity to make requests before deciding.
Offer Lease Flexibility
Offer flexible lease terms, such as shorter or longer leases, to accommodate tenants' changing needs. Many tenants aren't willing to sign a long-term lease. They may want a month-to-month arrangement or a shorter-term lease to accommodate their lifestyles, and if you don't offer those options, they'll leave.
For example, perhaps they're planning to leave the area for school within six months, but the lease is for a year. They won't sign. Flexible leases will keep them around.
Offer Incentives
How are you incentivizing your tenants to stay with you?
One potential incentive, as we mentioned, is a flexible lease. This allows tenants more freedom which will keep them happier.
You can also offer other incentives that many landlords only offer to new tenants. Perhaps you offer one month of free or reduced rent upon the new lease term, or you keep your tenant's rent below market value so they don't feel compelled to leave due to high costs.
You can also offer tokens of gratitude, like gift cards for local businesses. If you want to improve your property while building goodwill, offer a complimentary cleaning service or re-painting to refresh the property.
Keep Tenants Happy
At the end of the day, happy tenants are more likely to stick around. During their tenancy, make sure you're keeping the property well-maintained and responding to their questions and concerns. In general, leave them to their own devices.
Even if they choose to leave, they're more likely to recommend your property to friends and family.
Try These Lease Renewal Strategies
These lease renewal strategies can help you keep your best tenants in your Boulder, CO property. Don't underestimate the importance of valuable tenant retention when it comes to your property investment!
At PMI Coal Creek, we help Boulder landlords with all elements of property management. From knowing renewal agreement best practices to knowing the ins and outs of effective property marketing, we can do it all, and we'd love to help you!
Reach out for a free consult today.
