How many of your existing tenants renewed their leases last year? It's five times cheaper to retain an existing tenant than it is to acquire a new one. Improving your retention rate will save you on marketing, tenant screening, and onboarding.
Not sure how to encourage Flint, MI commercial tenants to renew their leases? Read on for the lease renewal strategies you need to secure long-term occupancy.
Research the Local Market
Review Flint's current rental market, including:
- Economic indicators
- Vacancy rates
- Rental rates
- Common amenities
This information can help you determine your rental rates. You can recognize which property upgrades you've neglected to make in recent years. Use this information to make informed changes to your lease renewal strategy.
Learn more about your renters. The average tenant will stay in a property for around 25 months. The average tenant retention rate is around 50%.
Ask tenants who recently renewed their leases why they decided to stay. Determine what other factors could have influenced their decisions. What are they looking for in Flint rental properties?
Show commercial tenants that you care about their needs. Use their feedback to start making changes to your properties.
Streamline the Renting Experience
If renting from you is difficult, your existing tenants won't want to stay. Streamline their renting experience. Implement technology throughout your properties and business practices.
Give commercial tenants access to an online rental portal. From there, they can submit maintenance requests, inquiries, and rent payments. They can automate payments for ease and convenience.
Communicate With Renters
Tenants won't want to stay if you're a difficult landlord to reach. Instead, they'll look for a landlord who is professional and responsive.
Use your online tenant portal to communicate with tenants. Respond to their inquiries in a swift yet professional manner. Automate responses to avoid delays.
Start their renewal process early. Provide a 90-day notice when their lease is about to end.
Get tenants excited about staying! Outline the key advantages of remaining in your commercial properties.
Complete Property Maintenance
Your tenants won't stay if the property is crumbling around them. Schedule routine inspections and keep up with maintenance. Maintaining your property will make it a more desirable place to work.
Offer Incentives and New Amenities
Encourage renewals by offering commercial tenants incentives. These can include:
- Fit-out contributions
- Rent abatements
- Rent-free periods
- Property upgrades
- Waived fees
- Gift cards and coupons
- In-unit upgrades
Upgrades can include new carpets, appliances, cleaning services, or a fresh coat of paint. Implement smart locks and access control systems to help tenants feel safe.
Hire a Property Manager
Instead of developing your lease renewal process alone, outsource. Partner with an experienced property management company. Their services can build strong tenant relations and increase tenant satisfaction rates.
Happy tenants will gladly renew their leases. They'll have peace of mind knowing help is a call away.
Develop Effective Lease Renewal Strategies
Learning how to increase renewals will improve your occupancy rate and ROI. Use these lease renewal strategies to encourage commercial tenants to stay. Remember, you can always ask for help.
Our team at PMI Mid Michigan uses proven strategies and state-of-the-art technology to support our clients. Leverage our 20 years of industry expertise to simplify your lease renewal process. Contact us today to generate more lease renewals.
