Tips for Tenant Renewals

Tips for Tenant Renewals

rentalThe key to successfully investing in rental properties is keeping them occupied. Read the following tips to help manage tenant renewals.

Real Estate Investors in Rental Properties

When thinking about ways to improve the renewals of your rental properties, it is highly advisable for you to first assess your rental property. Then you assess your current tenant’s history.

The top 3 key factors when evaluating your rental property and tenant renewals are to assess the quality of your rental property, evaluate your rental property’s competitive position in the local market, and review your current tenants’ history and ability to pay rent.

Sixty days before your tenant’s lease is up you should analyze your rental property for renewal. And you should conduct a simple cost benefit analysis to determine the cost of finding a new tenant vs keeping your existing tenant.

Assess the quality of your rental property

If your rental property is a multi-resident property you might want to average the rent increase for an economies of scale. This way no single tenant is overburdened.

Evaluate the Local Competition

Evaluating your rental property’s competitive position in the local market will give you a clear indication as to the value of the rental property opportunities. The best way to review the market is to look at your local competitors with similar locations and floor plans.

Review your current tenants’ history and ability to pay rent

It is always a good idea to look at individual tenants and their payment history. Also, pay attention to how they take care of the rental. You might want to give the tenant a smaller rent increase if you know they have trouble paying the rent but they take care of the property and are never late with payments. If you don’t mind losing the tenant, a larger increase might force them out but allow you to turn the rental over to another renter.

Use these basic tips as a guide. They will help you to increase your cash flow and lower turnover costs!

Red Door House to Home works directly with real estate investors that are not necessarilly interested in managing rental properties, we do it for you! Contact Us.