No homeowner likes their property to be vacant. There are utility bills and mortgage payments that have to be paid. Increased vacancy periods mean less money coming in to help cover the costs of owning a home. The best way to avoid losing money associated with vacancy is to keep a good tenant in the property. Here are some tips and tricks to help keep good tenants in your property.
The first important thing to do when it is time to renew is to see if you even want to keep the tenant. Have they been making on-time payments? Are they keeping the property clean and maintained? Is it worth it to keep the tenant in place to decrease vacancy time? If the answer to any of these questions is no, you may want to evaluate if it is a good idea to keep them in the unit. If keeping them in the unit will do more harm than good, you can serve them a notice to vacate at the time that their lease expires, but be sure to follow what the lease says when serving them this notice and provide them the amount of notice required.
Once you’ve established that your tenant has been a good tenant, here are some tips to get them to renew and stay in the property:
Reach out well before their lease expires: In general, it is good practice to reach out to the tenants about 2 months before their lease expires. People don’t always respond right away, so it’s good to give yourself plenty of time for them to think about renewing, discuss it with roommates, and then get back to you with an answer. Get them locked in well before their lease expires. Not only will this guarantee occupancy, but it will also help you have plenty of time to market the property if they do decide to move out.
Have reasonable rent increases: It is important to keep up with market rent to ensure you are getting the most out of your rental, but doing drastic rent increases could make your tenant move out. There is a delicate balance between not increasing enough and increasing too much. Look at the comparisons of units similar to yours in the area where your property is. Generally, $50-100 increases are standard, but markets change, so be sure you have a basic understanding of what rent is going for in your area.
Maintain a good living experience: The best way to get a tenant to stay upon renewal is to make sure they have a good experience throughout the time they have lived in the unit. Make them want to stay so it’s not even a question when they get offered a renewal. Be prompt for maintenance concerns, respond to tenants' inquiries, and show appreciation in any way you can.
There is a lot that goes into managing a home. Ensuring that your property is occupied can be a full-time job. It is important to stay on time for renewal to prevent prolonged vacancy periods, which are costly. Hero Property Management is here to help. Call now at (801) 845-4390 to schedule a free consultation.