Property marketing doesn't end once a new tenant moves into a unit. The best strategies also capture lease renewals.
Lease renewals lower costly turnover rates. They help owners avoid move-out cleaning, tenant screening, listings, and more expenses.
If you struggle to get rental lease renewals, it's time for a new approach.
Here are five ways to incentivize renters to renew their leases.
1. Partner With Local Services
Refresh yourself with the qualities that attract tenants to your property. Referring back to your original property listings is a great starting point.
Suppose a major selling point is close proximity to shops and services. Don't miss an opportunity to build a partnership with small businesses nearby.
For example, you could partner with a local furniture company to provide exclusive discounts to tenants. What an excellent perk for tenants who want to refurnish their units.
Consider partnering with local tax preparers, auto shops, and event planners. Think about the types of local services your tenants need. Together, you and your small business partner can come up with exclusive coupons, discounts, and specials.
Send these offers via email or direct mail. You could also include partnership perks with copies of your tenants' lease renewal contracts.
2. Reward Tenants
Consumers respond to rewards. Apply the same consumer psychology to your lease renewal strategy with smart discounts.
Consider the following discounting strategies:
- lower pet deposit rates for renewals
- discounts on the first two months of rent
- discounted (or free) kitchen upgrades
Take a page from retail marketing to create your own tenant loyalty program. Tenants could earn points every year they stay, accumulating enough to earn appliance upgrades. This could include a new state-of-the-art fridge or a washer and dryer set.
3. An Opportunity to Celebrate
Low lease renewal rates are an opportunity to think creatively. Reach out to tenants to celebrate their birthdays or move-in date anniversaries.
For example, you could celebrate a tenant's birthday with a fruit basket from a local vendor. An upcoming move-in anniversary is a wonderful opportunity to gift a new air fryer, microwave, or toaster.
4. The Marketing Value Of Property Management
One of the luxuries of working with a property management company is the stamp of professionalism. For example, tenants can log into an online portal to pay rent and submit requests. This perk alone is an incentive that attracts tenants and renewals.
Having a stamp of professionalism also gives you, the landlord, a marketing edge. Including PMI West Suburban in your digital and print marketing material builds trust and professionalism with tenants. Thus, you have an opportunity to craft marketing campaigns that actually engage clients.
5. Lease Renewal Gifts
Take that professional stamp by working with your property manager to create renewal gifts for tenants.
Gift mugs, stationery, computer accessories, coasters, and marketing items to long-term tenants. You could also gift local items with Naperville locals like shirts, calendars, and cups.
Wrap these promotional items in a gift basket along with those partnership coupons.
Revamp Your Lease Management
The above ideas also present opportunities to connect with the Naperville community.
Remember the value of partnerships, rewards, anniversaries, professionalism, and gifting when creating incentives for lease renewals.
PMI West Suburban provides a suite of services to empower landlords and tenants, leading to excellent professional relationships.
Get your free rental analysis today or schedule a consultation to learn more about our process.