Fast Lease Renewals

By on Sep 6, 2019 in News

Lease renewals can save you time and money! Securing a new renter and preparing the unit costs you at least three month’s rent, excluding any lost rent during the vacancy. By proactively securing lease renewals, you can skip the headaches and extra costs.

Below are seven incentives for renters to quickly secure lease renewals.

Offer tiered discounts. When we offer discounts for lease renewals, we are appealing to residents’ desire to save money on rent. Tap into that inclination by offering tiered discounts. Perhaps if they renew 6 months in advance, they get 30 percent off the first month’s rent. At 3 months, they get only 15 percent and at 1 month, they get 5 percent. Use a revenue management tool to ensure that you’re offering great deals that won’t hurt your bottom line.

Showcase a new place in the same community. A resident may love your community, but the unit no longer works. Perhaps the family has expanded, or the resident no longer has a roommate. It may not have occurred to them that they can relocate within the property! In your lease renewal invitation, consider showcasing units that are slightly larger or smaller than what the renter already has. Headlines like “Get the extra space you need close to home” or “downsize to put money in your pocket” notify residents that you can meet their needs within the community.

Make the apartment look like new… Incentivize lease renewal with upgrades such as new appliances, countertops, or solid flooring (tiles, hardwoods). If the resident renews for multiple years, the upgrades have paid for themselves. If they opt to relocate, a recently upgraded unit will show well with prospects.

…or maybe just refreshed. For tighter budgets, minor touches go a long way towards making an apartment feel new. Consider a fresh coat of paint for the walls or new chic, efficient lighting. These small upgrades demonstrate your willingness to invest in good renters.

Offer priority on upgrades during renovations. Planning to renovate the property? Consider priority upgrades as an incentive. Being the first apartment with keyless entry, smart home automation, or the new kitchen layout gives bragging rights to renters. For larger properties, this can be a logistical challenge. Consider offering the incentive to multi-year renewals to make it worth your while.

Waive fees on desirable amenities. Fees associated with parking, storage, pets, laundry and trash services can be waived to sweeten the pot for renters. Make more than one offer available. Not everyone wants pets or needs to park a car.

Sell the whole neighborhood! When it comes to selecting a home, location is a major factor for many renters. Remind them why they fell in love with the area! Offer gift cards and discounts to popular shops, restaurants, and service providers. Don’t forget tickets to local sporting and social events. Consider combining these offers into a fun gift basket. Before you shell out cash for these offers, try to collaborate with local businesses for freebies or discounts.

BONUS Combine offers. In a highly competitive market, consider the feasibility of combining deals for longer leases. Perhaps you offer a month’s discount and waived amenity fees for signing a two-year lease, for example.

When renters stay put, you save thousands in cash and they save on relocation costs. It’s a win-win!