It’s no secret that retaining a resident costs much less than finding a new one. A vacant unit can mean trouble for a property’s cash flow as the income from rent has stopped but the operating costs, of course, have not.
Software Advice (a source for property management systems) recently published findings from a survey asking renters to state which incentives, if any, would make them renew their lease. Just over half of those asked preferred a monetary incentive, in the form of a rental discount, cash, or gift card.
Interestingly, the rest favored upgrades. From covered parking to extra storage space, gym memberships, free grocery delivery service, kitchen appliances, electronics, and even gift cards (which of course are tax deductible!), residents were happy to renew for an entire year—if not longer—simply for an upgrade or a gift.
When it comes time to renew a lease with your tenant, think about incentives that are an attractive choice both today and in the long run. A gift card might be appreciated by your current renter, but what about the next person who moves in?
You’ll want to look for things that increase property values over the long run such as replacing old flooring, buying new appliances, or finally making the switch to online management—anything that makes the experience of condo-living easy, seamless, and hassle-free. Remember, the biggest reason people move into condo is convenience. So choose an incentive that was designed to make the lives of your valued residents easier.