One key way to sweeten the deal is by offering some sort of incentive in those renewal letters sent out 90 days before the move-out date to entice residents to stay. Some owners believe offering incentives help with resident retention.
With rent prices increasing around the nation, some property owners offer incentives that take a bite out of rent increases. For example, some money gets taken off the increased rental rate if a resident signs a new lease more than a month before their current lease ends.
On the other hand, some offer thank you gifts on renewals. Some popular gifts are a one-time complimentary house cleaning or valet laundry service. It’s easy to develop a relationship with the companies offering cleaning services since they may gain new business through the renewal gifts.
Another option is to even offer a short-term incentive program that can be started and sent out to targeted residents. Something like “If you renew your lease in the next week we will give you a $50 gift card.” It usually has a very short time frame with it to kind of stimulate and generate some activity.
Turning over an apartment or home can cost between $1,500 and $2,000 depending on the property. Wouldn’t you rather just keep a tenant in place?
Unit renovations are also a big incentive that may sway a resident to stay. Instead of having to completely turn the unit, an owner may offer upgrades to a resident.
Upgrading finishes and interiors will add value instead of wasting money on cleaning costs.
If it’s going to cost $1,500-$2,000 to turn the apartment or home over anyways, why not invest that money into upgrading the home and keeping the resident? By investing that money and keeping them, it will ensure you won’t have rent loss and you’ve just increased your property value!
Home features and finishes were the third most important amenities to residents who were unsure if they were going to renew their leases in late 2013, according to a recent Kingsley survey. Rental rates and location were the first two deciding factors in renewals for those residents.
Interior upgrades, such as accent wall paint, upgraded light fixtures or the addition of ceiling fans, seem to be the most popular kind of renovation that people prefer. And if that doesn’t convince someone to stay, there are other upgrade options as well.