The last thing you want is for your Tri-Cities property to sit vacant for weeks or months. An unoccupied space costs you money. That's why it's so critical to work with your best tenants to make sure they sign on the dotted line again.
Read on to learn about three common mistakes to avoid during lease renewals!
1. Waiting to Start the Process
When you know that a residential lease is ending soon, don't delay the process of seeking a new lease agreement. One of the biggest mistakes you can make is waiting too long.
Waiting too long means you give your tenant the time and energy to consider other options. In a competitive rental market, you don't want to lose responsible tenants.
You want to communicate clearly to your tenants that you're eager to continue having them on your property. You can include some incentives to try to move the process forward more quickly. Maybe you'll refund a security deposit early, for instance, or give them a free covered parking spot.
2. Limiting Options for Rental Lease Lengths
As a rental property owner, you need to be flexible. That means working with tenants to accommodate their needs for lease lengths. While a longer lease means you won't have to worry about a vacancy for a year or longer, it might not make sense for your tenants.
Be willing to allow shorter leases, like six-month leases, if a responsible tenant requests it. And be willing to work with them on month-to-month renewals. Your flexibility will be appreciated - and it could translate into strong online reviews.
Some tenants could be in the process of moving, for instance. They might not want to sign a yearlong lease agreement if they know they'll be househunting and closing on a home in the next six months. And other tenants may be looking for new jobs that could take them out of the area within a year.
3. Offering Too Many Discounts
Yes, you want to entice your tenants with discounts. This is particularly true if your tenants have made payments on time, treated neighbors with respect, and kept their spaces clean. After all, high prices can make a tenant choose to go elsewhere and leave you with a vacant unit.
But going too low can upend your profit potential. You'll need to research rental prices for comparable spaces in the area to make sure your offer is reasonable. And before you move forward with a contract, look for other ways to save money and time.
Consider bundling certain responsibilities in a lease agreement, for instance. Maybe you want tenants to tackle lawn care. Or maybe tenants will need to do snow removal.
Know How to Secure Lease Renewals
Getting lease renewals can provide stability as a property owner. Start the process early when you identify a lease term that is set to expire, and offer incentives. But avoid dropping rental prices too low or else you might not make a profit.
At Crown Property Management, we know that being a rental property owner in the Tri-Cities area comes with a lot of responsibilities. We can manage those tasks for you so you maximize your property investment while offering tenants a professional experience. Schedule your free property consultation today!
