Are you keeping rental increases at market rate? Resident turnover has been on the rise as the rental market softens and residents have more options available to them. Minimizing the costs of turnover is important, but don’t give up your rent increases just to get retention.
Here are a few tips to retain your valued residents while still getting the rental increases you need.
Show Them the Comps
Everyone loves having the work done for them. When a lease comes up for renewal, spend a few minutes summarizing what your competitors are charging. Presenting this information to the tenant, alongside the lower cost of their renewal, makes it far more likely they’ll sign and stay.
The bonus to this strategy is that you can choose which competitors to include. Tenants will likely check around anyway, but this ensures they see your rates looking favorable next to the competition — and a competitor’s new-lease rate is usually higher than a renewal rate, which gives you the benefit of looking like the better deal.
Highlight Your Amenities
Put a dollar amount on every way you provide value. Do you have an on-site gym? Remind residents of this amenity and show them what a gym membership would cost elsewhere — if they don’t have to spend $40 a month on a membership, a renewal starts to look like a bargain.
- A pool can save a family $400 or more per summer.
- A dog wash area or in-unit laundry can be compared against what competitors charge for coin-operated laundry.
Sweeten the Deal
Planning to upgrade the lighting anyway? Adding a deck? Whatever improvements you had planned for a turned-over unit, offer them to your existing tenant instead, as a benefit of continued residency.
If you really want to go the extra mile, send a small gift basket along with their renewal request. Everyone wants to know they’re appreciated.
Need help increasing your NOI and growing the value of your property? Contact us for more insight into the strategies that will help you build wealth over the long term.
