The latest economic data for New York shows a sharp drop in rental vacancy rates in the last two years. Combined with the fact that more people are moving out of New York State than coming in, this tells the story that people are settling into their rental units for much longer.
In the real estate game, that means it should be easier for you to get lease renewals. If you're looking for guidance on how to lock in those lease agreements for longer, here are five great tactics to keep your tenants returning for more.
1. Bring Lease Renewals Up Well in Advance
Regularly reaching out to tenants is an excellent property management technique. In your correspondence, between questions about maintenance and rent, be sure to remind your tenants about your renewal policy and process. If they've had months to consider it (and if the process is easy), they will likely apply for the renewal.
2. Offer Incentives
Inflation and interest rates are two big reasons people leave New York. Offering a lower-than-inflation rent increase incentive (or no increase, if you can afford it) for tenant lease renewals will make relocating far more expensive by comparison to your tenants.
Other incentive ideas include gift cards, a free month, and even a free upgrade. When paired with the first tactic above, you'll have much more success locking in those renewals.
3. Respond to Tenants Quickly
Many people will assume that silence on the subject of renewals means that no renewal is possible. This assumption is twice as strong when they've reached out and received no answer.
Making a habit of quick response times generally keeps tenants happier with you. Having this habit will also mean you'll be ready to secure a lease renewal the moment a tenant asks.
4. Be Flexible
A lease renewal is not the same as a lease extension. Extensions prolong the lifespan of an existing contract, whereas a rental lease renewal creates an entirely new contract with new possible terms.
This allows you to renegotiate and be more flexible in considering your tenants' desires. It's also a good idea when you consider that you don't have to screen new tenants. You know them well enough to understand what they can be trusted with (if you want to vary maintenance responsibilities in exchange for discounted rent).
5. Use a Tenant Portal
If tenants feel that dealing with you has less hassles than dealing with other landlords, they're more likely to stay with you. Using a tenant portal is one of the ways to simplify your dealings with tenants and make you easier to work with.
Become New York's Best Landlord
Tenant retention requires long-term vision. First, you'll have better success if your tenants know that the offer is on the table from early on and that there are incentives (if any).
How safe your tenants feel with you also determines your success with lease renewals. If you respond quickly to concerns and are easy and flexible in your dealings, your tenants will probably not want another landlord.
If you want to be the best landlord in New York, PMI Properties has two decades' worth of landlord advice to share. Learn more from the best in the business today.
