Property management is becoming a painstaking job with the changing pace of the modern world. Wrong and impulsive choices in property management can burden you with both financial and psychological stress. One bad tenant is capable of draining you considerably of your energy and resources. Here are some of the stage-wise professional strategies when you are approached by good and amicable tenants.
How to keep good tenants
Procrastination and negligence is to be avoided at any costing whenever you are about to make a lease agreement. People are most hurt when something comes unexpectedly. So keep things clear at your end. Don’t put underhand clauses in the agreement that automatically renew lease agreement if the tenant doesn’t vacate the property after the expiration of the lease.
Guess what, it may help you keep the tenant but it will definitely upset the tenant, and may also damage your good will and reputation. There is more to it; you now have to deal with a tenant who doesn’t like you because of your devious methods.
Initial lease and things to keep in mind
Lease renewal clauses along with the rate of rent increase should be very clear and determinate. Tenants don't get upset by the rent increase only when they are expecting it, otherwise you may see your property vacant at the expiry of the lease. So let your tenant know that due to our uncertain economy the rent may increase in the future.
During the lease
In-time interaction and communication is the key to sustain healthy relationship with your tenant. Listen to what your tenants have to say and make sure that their concerns are delivered in time and provide quality maintenance. Secondly, keep them engaged through social media and conventional posts and mails. It will help build company’s reputation and goodwill. You may also consider offering monthly or yearly festive for your tenants, and don’t worry it will pay you off.
Most of the people are excited by small financial rewards which they have earned by doing something good. Here is the trick; offer reward to the tenants who pay their rent on time every month for one year.
Lease renewal strategies
First of all keep the renewal terms and period not so scary that the tenants hesitate before going for the renewal. Second, don’t wait for the lease period to come to expiry. Start working on renewal when half the period (6 months) has passed by offering ‘locked-in rent price’ for the next year with a nominal increase in the rent. If the tenant is not interested try the same or any other feasible offer again in the 9th or 10th month.
Show concern about the tenants’ future plans and try to make them stay as if they are the most wonderful of all the tenants. Sometimes tenants leave just because they were not asked to stay, strange - no?
If the tenant has decided to leave, don’t just let him leave and forget about him. Most of the time Facebook/Google reviews are given by the angry or dissatisfied tenants. In order to balance their reviews a request for review to happily leaving tenant can be a life saver.
Sometimes you need to shorten the lease period, so in that case, offer some financial benefit to the tenant for vacating early. It will save the reputation.
Lease renewal incentives
Incentives are the strongest motivators. If you want the tenants to stay longer offer them incentive that can prove to be a win-win for both the parties. Offer upgrades and quality maintenances to the tenants and they will feel special and will prefer to stay longer. Jeffery Taylor, a property management expert says, ‘people stay longer when I offer them upgrades’.
Conclusion
Finally, greater the lease renewals lesser the vacancies greater the profit, after all its always about making profits. Keeping the tenants engaged and adopting effective renewal strategies are the keys to keeping your tenants for longer.