In 2022, the average cost of an apartment rental in Colorado was nearly $1,600. Apartment rental rates fluctuate with the economy and supply and demand. Occupancy rates also fluctuate.
However, keeping your occupancy rate as high as possible is vital for rental property owners. One way to do this is by encouraging tenants to renew their leases.
Lease renewals are a strategic part of a rental property business. But you might need to find some strategies that help you improve on this aspect.
Continue reading to learn some top methods to improve your lease renewal process.
Improve Tenant Experience
If you want your tenants to stay, give them a reason to stay. For example:
- Provide clean properties
- Update the units
- Improve your tenant communication
Tenants sense if their landlords care or not. They often base their decisions on staying in their units on this factor. They might stay if their landlords provide great units and address concerns quickly.
If you're experiencing problems with your occupancy rate, work on this first. For example, start performing improved rental property maintenance and repairs. Next, focus on addressing concerns your tenants express.
Automate Your Systems
Operating a rental property business without technology may harm your business. Therefore, automate your systems.
The best way to do this is by creating a tenant portal. Your tenants can use this portal to do various things, including:
- Pay their rent
- Request repairs
- Read the announcements you post
- Report concerns or issues
Automating your systems is helpful for tenants and you. It can make managing your properties easier, as everything is on the portal.
Upgrade the Units
Encourage your tenants to stay by keeping up with updates to the units. A rental property upgrade of new granite countertops is a good choice. Replacing old plumbing fixtures is also a wise move.
Your tenants might be more likely to stay if they have beautiful apartments with routine upgrades.
Keep Your Prices in Line With the Market
Increasing rent is a standard part of operating a rental business. However, use caution when increasing prices. Try to keep your prices in line with comparable units.
Performing steps to calculate rental increases is helpful, too. You can do this yourself or hire a property management firm for help.
Finally, offer incentives to encourage your current tenants to renew their leases. For example, provide an extended rental payment grace period.
You could also agree to let your tenants have pets. Of course, you need strict rules for pets in place if you allow them. Allowing pets is a great incentive for many tenants.
Need Help With Lease Renewals?
Landlords often struggle with keeping their units occupied. You can improve your occupancy rate if you improve your lease renewals.
Do you need some assistance with this?
PMI Northern Colorado can help. Our company has more than 20 years of experience managing rental properties.
We operate out of Fort Collins, CO, and offer state-of-the-art technology for rental property owners.
Ready to learn more? Contact us today for more information.