If you are a landlord, having an excellent tenant in your property is like winning the jackpot. It means you don't have to worry about entering a property and finding it trashed. Nor do you have to chase tenants month after month for rental payments.
Once you find the best tenants in San Jose, CA, you'll want to keep them in your property for as long as possible. Discover our top five strategies for lease renewals to maximize your odds of getting your tenant to stay.
1. Start the Conversation Early
If you want your tenant to renew their lease, don't leave it until the last minute. A tenant will be conscious of deadlines and have already started looking for a new property.
Aim to have an initial conversation three or four months before the lease ends. Begin by asking your tenant about their plans. Listen to reasons why they want to stay and why they might want to move. That helps you establish negotiation terms.
2. Offer Some Incentives
One of the most tried-and-tested lease renewal strategies is an incentive. You can entice tenants to renew their leases by making your terms more attractive. Find out what incentives would be most appealing to your tenant.
Some may worry about moving jobs and need a more flexible lease. For others, money may be their primary concern, and you could offer a financial incentive like a discount on the first month's rent.
Long-term tenants also want homes with attractive and comfortable interiors, so consider providing an upgrade budget as an incentive.
3. Do Some Market Research
As a property owner, you should constantly monitor the real estate market for property management tips.
Be aware of trends and demand in San Jose. That research will be helpful when you need to negotiate a lease agreement renewal with a tenant.
Market information can help you determine whether there is a lot of demand for properties in the area and what price you hope to receive for your rate in the new lease contract.
4. Consider Tenant Satisfaction Levels
Never assume your tenant is happy with your rental--seek out their opinion and take steps to improve their satisfaction levels. A happy tenant is loyal and will be more eager to sign up for lease renewals.
Tenants are typically satisfied if you are responsive to their needs and flexible. For example, a good landlord will make reasonable accommodations to fit a tenant's needs, like allowing a much-loved pet into a property.
5. Stay on Top of Maintenance Work
If you have a run-down, neglected property that needs work, you won't stand much chance of getting a lease renewal. Tenants will look elsewhere instead.
So, always prioritize maintenance work and be proactive. Arrange regular inspections to ensure everything is in good working order. Upgrade older heating systems, electrics, and plumbing to more energy-efficient ones.
Lease Renewals: Making Them Work for You in San Jose, CA
When you find a reliable tenant, you'll want to keep hold of them. Use these five strategies for lease renewals to make that happen.
Fireside Property Management has 25 years of experience in real estate management, so we know what it takes to attract and maintain the best tenants. For help with your property, head here to discover our services.
