In New Jersey, rental vacancy rates are typically around 3.7%. That's a lot lower than the national average, making it a profitable state for potential real estate investors.
That doesn't mean landlords can take their tenants for granted, though. Vacancies are costly wherever you own property, so it's vital to keep your tenants in place.
Keep reading for some inside tips on how to encourage lease renewals for your Ewing investment property.
Set Yourself Up for Lease Renewals
If you're considering investing in real estate, the first thing you need to know is that you get good tenants and bad tenants.
Good tenants comply with the requirements of their lease, pay rent on time, and take good care of their property. They have stable jobs and are more inclined to stay in your home long-term.
Bad tenants don't do any of these things and may break your rental property rules, too. Nobody wants bad tenants to renew their lease; in some cases, you might even need to remove them via the eviction process.
Tenant screening is the best way to ensure you get tenants into your rental property. This process involves completing several background checks to confirm the following:
- Employment details
- Identity
- Eviction history
- Criminal record
New Jersey has strict laws against discrimination based on criminal history, so tread carefully in this regard. An accomplished property manager can help you navigate these pitfalls.
Keep Your Tenants Content
You must stay up-to-date with rental property maintenance if you want to keep your tenants happy and preserve the value of your investment.
Routine maintenance helps you avoid unnecessary repairs and replacements. Carrying out repairs promptly limits further damage to your property.
Hiring a property manager to carry out these time-consuming tasks is the best way to ensure your property gets the ongoing maintenance it needs.
Routine property inspections provide opportunities to connect with your tenants while checking for maintenance issues. Property managers can assist you with this, too.
Effective tenant communication is another benefit of working with a property manager. They use the latest technology to:
- Streamline correspondence
- Manage maintenance repairs
- Keep track of paperwork
These owner/tenant portals also provide convenient payment methods to enhance rent collection.
Incentivize Lease Renewals
Building positive relationships with your tenants is an excellent tactic for encouraging lease renewals. You could also offer incentives to encourage them to extend their lease.
Offering a rental payment grace period is one way to sweeten the deal. You could offer a month or two at a reduced rate or agree to forego a rent increase for half the lease.
Other ideas include offering them a thank-you gift when they renew their lease. Some ideas include a rental property upgrade like installing new appliances, a free meal at a local restaurant, or a gym membership.
A Property Management Company Helps You Succeed
PMI Essential offers a full portfolio of property management services, including property maintenance, property inspections, and tenant screening.
Our expert services and professional team members help preserve the value of your property and encourage lease renewals. Get in touch to experience the benefits of hiring an experienced property management firm.
