Attracting your ideal tenants with property upgrades is one thing, but keeping them is a whole other story. As a multi-family property owner, you know how important it is to make sure your property is as close to max occupancy as possible. There are many factors that tenants have to weigh before deciding if they will renew a lease or not, one of the biggest being price. According to a study done by Zillow, 57% of tenants that decided to move and not renew a lease indicated price being a factor for that decision. Beyond price, there are many other things that can come into consideration including location, quality of space, amenity options, and level of service provided by staff. While incentives may vary based on your market, they can be a nice way to let your tenants know that you appreciate them and help persuade them to renew their leases. Here are some of the options you can provide:
Everyone wants to feel like they’re getting a deal, and offering amenity kickbacks can be a great incentive when it comes to enticing tenants to renew their leases. Depending on what amenities are offered at your property, you could provide vouchers for laundry units, a few months of free cable services, or car washing services. Doing so will require minimal investment for you to secure another year of rental income. Another option is to partner with local businesses to create a mutually beneficial relationship where you can offer gift certificates or other options that will get your tenants excited and also support local businesses.
If your property offers parking this may be a perk you’d like to consider. Parking is often an additional expense so offering a few months free or a reduced price can be a nice perk. If you have street vs garage or covered parking, you could also offer upgraded options for a discounted price. This shows your tenants that you appreciate them living at your property while also providing them with an upgraded option they may not have considered the year prior.
Smart Home Upgrades
Another feature you may want to consider offering tenants as incentive to stay are smart home features. Installing Google Home, Nest or smart home lighting and thermostats can be an enticing feature to tenants, plus it can also make your units more energy efficient. This is a great option that tenants may wish they had in their home but may not have thought was an option. Plus, the investment is minimal compared to the cost of turning a unit.
No matter what incentives you consider, the key is to provide something that will improve your tenant’s quality of life and remind them of why they moved into your property to begin with. This in turn will be mutually beneficial to you as a property owner when they re-sign their leases.
Looking for more ideas on what you could offer to tenants or improvements you could make to your property? Contact us today!