Having a tenant sign a lease agreement isn’t an easy job. That is why when they sign it, all efforts must be made to ensure that the tenants keep renewing the lease for the longest time possible. This post will discuss seven multifamily lease renewal tips to retain your best residents.
Sure, there are cases that tenants will only require to rent a space for a short while for various reasons. This makes it impossible to retain every tenant that you get. However, there are other tenants who plan to stay for long. Their lease renewal depends on the experience you will give them.
Tenant retention efforts start at the initial signing of the lease agreement, and it should be a continuing endeavor throughout the year until renewal time. Here are 7 tips to help you in your efforts to retain your best tenants for your multifamily apartment building.
7 Multifamily Lease Renewal Tips
1. Be prompt in solving issues
Issues will always crop up in the apartments. Turning a blind eye or deaf ear to the concerns of the residents will only end up frustrating them. As a property owner or manager, you must cultivate the habit of listening to the tenants.
Don’t ignore their phone calls or text messages, it is important that you are prompt in answering them. And not just listening, you must acknowledge the concerns and act accordingly.
If an issue can’t be handled at the moment, it is paramount that you inform the tenant of the same in the most honest way. Just knowing that you listened could be enough to retain a tenant even if it takes time to fulfill what they want.
2. Keep the environment well-maintained
At the very least, the modern tenant is looking for a clean, safe and comfortable place to live in. You can be sure that giving them that will make them stay there for a very long time.
Ensure that you are keeping the environment well maintained. Thaw out snow and ice from walkways and parking areas in the winter. Have well-kept lawns and flowerbeds throughout the year.
Respond to all maintenance requests inside the houses promptly. It is also good to occasionally carry out some home remodeling works in the apartments, for instance, refurbishing the kitchen counters or storage areas.
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3. Ask for feedback occasionally
Some tenants will be unhappy about their living situation and keep quiet about it. They then drop the bomb when the time comes for agreement renewal. It can be very hard to convince a person otherwise on an issue that has been affecting them for a long time. That is why it is very important to keep tabs on how your tenants are faring in their apartments.
Don’t wait until they come complaining, be intentional in asking for feedback from time to time. This way, you will be able to catch issues on time and rectify them. You will also learn what you are doing well and capitalize on it.
4. Create a sense of community
People are now more conscious than ever to stay in places where they feel a sense of community. If a tenant is able to feel that he or she is living around people who are friends and are willing to help each other out, he or she is most likely to live there for a long.
Ensure that you are creating situations that encourage interactions between your residents. You can host regular events to bring everyone together. Common areas such as pet care areas also work well in creating a sense of community.
During the holidays, you may want to give your tenants simple gifts. It shows you are being thoughtful. And it also prevents your tenants from taking advantage of you in future situations. Think about it. Are you really going to screw your landlord after he sends you cookies?
5. Keep tenants informed
Residents appreciate being in the know of everything that is happening in the place they call home. If maintenance is to be carried out, you don’t want to surprise the tenants when the maintenance people are knocking on the door.
For example, let’s say you are remodeling the downstairs unit in a two unit building. During the remodeling process, there is noise and dust. Further, the workers could shut off the electricity and water. Therefore, it is paramount to give the tenants a 24-hour heads up to plan ahead.
6. Be consistent with your staff
How well you retain your staff as a property management company tells a lot about you to the residents. If they see five people in a year maintaining the grounds, they can most likely doubt your credibility.
It can also make them start questioning the safety of their houses. Ensure that you are putting in the necessary efforts to maintain consistency with your employees.
7. Keep up with residents’ needs
Peoples’ needs to keep changing at a rapid rate. For example, due to the global pandemic, the need to work from home is huge. Further, many parents are taking care of their children at home due to schools being closed.
Therefore, you may want to advertise your property as work from home friendly or kid friendly. Highlight the great outdoor space, views, and peace and quiet.
The demand for single family homes is much higher than condos now. Smart investors are buying up homes in areas father away from downtown. The reason being is that there is a “fanning out” of residents in cities since commuting is no longer as necessary.
Retain Your Best Residents By Being Thoughtful
Hopefully, these lease renewal tips will help you retain your best residents. Renewing lease agreements comes once in a year. If you are not careful, it can be easy to forget about it until the very last minute. However, this important procedure should never leave your mind throughout the year.
Having a better tenant is much better than trying to get maximum rent. A resident who lasts for years will reduce headache. As you get wealthier, saving time becomes much more valuable than squeezing every last dollar out of your rental property.
Attract the best tenants by offering a great rental property. Retain your best residents by being thoughtful and attentive to their needs. Owning real estate is one of the best ways to build wealth over time. When you can earn rental income and benefit from capital appreciation, you will do very well long-term.
Real Estate Recommendation
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I’m bullish on the heartland of America where valuations are lower and rental yields are higher. With work from home as a major trend, there should be migration towards lower-cost 18-hour cities for decades to come.