Following the pandemic, eviction filings in Texas have soared. For landlords, this means wasting a lot of money and effort on the re-letting process.
One way to avoid evictions is to focus on keeping your good tenants around with lease renewals. That said, renewing a lease may not be a simple process either. Even if a tenant wants to stay, you'll still need to offer the right terms.
Looking for ways to increase the retention rate for your Houston, TX property? Read on for five tips that will help you make this happen!
1. Start Early
In Texas, the legal time frame for renewing a lease is up to 60 days before the end of the lease. If you don't renew it by then, you may not be able to do it at all. Check your lease to confirm the lease renewal period.
Of course, it's often a good idea to give your tenant more time to mull things over. For this reason, consider sending them a notice 90 days before the lease expires. If they decline to renew, you'll have more time to attract good tenants.
2. Evaluate Rates Carefully
One common factor that dissuades renters from renewing leases is price. If you raise the rent too much, the deal might fall through. Look at the average rental rate in your market to make a more informed decision.
In general, raising the rent by 3% to 5% shouldn't cause much backlash. However, you must be able to explain why you're raising the rent to your tenant. If you can cite specific reasons, they may be more amenable to the idea.
3. Offer Incentives
Speaking of tenant retention, it always helps to offer incentives for renewing a lease. By sweetening the deal, you show your residents you value them and want them to stick around. Common lease renewal incentives include:
- Gift cards
- A free month or rent credit
- Free upgrades (such as a new appliance)
4. Make the Process Seamless
Another key property lease guidance tip is to simplify the renewal process. Renters don't want to jump through hoops for a property they don't love. Moving is a pain, but a wearisome renewal process isn't much better.
One way to make lease management easier is to go digital. Email your renters instead of calling them and have them e-sign a lease rather than mailing them a hard copy. This is a simpler method and plays better with newer generations.
5. Invest in Your Residents
When it comes to lease renewal strategies, it's all about the resident experience. If your renters love living in your property, lease renewals should come naturally. Here are some ways to create a good resident experience:
- Host resident events
- Maintain open communication
- Divide maintenance responsibilities fairly
- Enable smart access throughout the building
This Is How to Handle Lease Renewals
As you can see, lease renewals involve doing a lot of research. Still, this is much preferable to dealing with the turnover costs of acquiring a new tenant. If you're struggling with the renewal process, consider outsourcing it.
Our experts at PMI Bear Creek can help you keep good tenants in your Houston rental. We offer a Happiness Guarantee: if you're not happy with us, you can cancel our services without penalties! Schedule a free consultation right now!
