The days are getting warmer and longer, the birds are twittering away - that's right, it's spring, or as I like to think of it, action time.
As landlords, we know that more people tend to move during the summer months and few people move without some planning - often, months in advance. In the spring, renters are thinking about moving and start looking at their options, so you should be thinking about lease expirations and tenant retention.
How's your market doing?
As a rental property owner, you should be taking action, doing your due diligence just like when you bought the property in the first place. Check out rental listings to see if there have been changes in the rental rates in your area and pay particular attention to incentives and promotions being offered - you're sizing up the competition. Renters who get the urge to move are usually still planning to stay in the area. They're often looking for a change of scenery, different schools or just a better deal on rent so they can save up for other things.
How do your properties stack up against the competition by size, amenities, features and rent? It's crucial to know your market going into the moving season; if you need to offer an incentive to keep tenants, it's time to think about what they may value. If rents in your area have gone up, but only minimally, you may be able to retain your tenants by simply letting them know you're not going to raise their rent, effectively pricing your competition out of the market.
If rents have gone up significantly, your tenants will probably expect - and accept - a rent increase. Or, if you do lose your tenants but can get new ones at a nice increase in rent, that might be an acceptable payoff. In that case, it's time to start your marketing, advertising the unit for exposure when decisions are being made. Announcing availability in the peak moving months will help you to fill the unit faster.
Spring cleaning and improvements
Whether or not rent adjustments are necessary, you can encourage your tenants to stay by improving on their living experience. Consider offering a single deep-cleaning service upon lease renewal. You might even be able to get a discount, especially if you own multiple properties, as the cleaning service will be hoping to get more business from the tenant in the future.
Any painting, minor repairs or other property improvements you can do in the spring will play into your tenants' moving decisions. If you've been planning on any appliance upgrades, this would be the time to do them. You'd be surprised how a new refrigerator or upgraded dishwasher can impact quality of life, create a sense of goodwill and keep your tenants happy.
You made your landlording resolutions in January, and now it's time to act on them. Cut your vacancy losses and cost to rehab between tenants by making improvements that encourage your current renters to stick around - and if they do choose to move, be ready to market your property to catch the attention of spring and summer rental shoppers.
