Tenancy renewals normally come into the conversation around three months before the end of any rental contract. With that being said, due to the competitive nature of the residential and commercial property market, it is now not surprising to see tenants thinking about their renewals much more in advance.
Often, tenants’ reasoning behind this is that they just want better value for money. Even if they have been renting a property for several years, with the way that the market is changing, tenants are becoming switched on to market trends, with landlords seeing tenants even beginning to track the rate of rental price inflation. This becomes important when you consider that in certain areas, there can be around 10–15 suitable properties for every tenant who is looking.
Therefore, with tenants becoming savvier, combined with the added options available and increased competition on the markets, landlords must ensure they are aware of how they can stop their good tenants from vacating their property.
Flexibility in Rent
Reducing the rent for a short period may benefit you in the long run. If a tenant submits a lower offer at the point of renewal, don’t dismiss it without thought; take your time to make the decision to ensure it’s the best move going forward. It is always vital that you are realistic, as the market continuously changes. A tiny financial gesture can make a huge difference to your tenant, and you will be rewarded with appreciation as well as mutual respect and understanding as the tenancy goes on. It can even help prevent a costly void period for your property to ensure your income is consistent.
Keep an Open Dialogue
Surveys have shown that the biggest cause of tenants vacating a property is due to maintenance issues not being resolved efficiently or in a timely manner. This issue often leans more towards the residential side of things, but as a general rule, as a landlord, you need to keep an open dialogue throughout. By being approachable and keeping in touch, you instill confidence in your tenant, knowing that you will act quickly if an issue arises. You can also look to hire a residential or commercial property management company that can organise the work on your behalf to ensure a speedy resolution.
Role Reversal
To stay competitive, you need to know your market and your competition. You need to be actively researching and educating yourself about rival properties in the area, taking into consideration what your tenants will be seeing when they are looking elsewhere. Take spy-like viewings to assess the competition. From here, you can look at what they are doing better and replicate or improve on it yourself. This will also help you identify what looks good and what looks bad, so you can ensure that when people come to your property, they can see that it’s of good quality and attractive for the long term.
Take on Feedback
It is always best to trust the professionals around you. Whether it’s your agent or property management company, they will be best placed to give you advice that puts your rental property in the best possible position. You can find that with competition rising and demands, you may need to edit what was previously agreed in the contract in order to secure the renewal. It is always best to take feedback from the market and listen to their advice, as it will give you realistic expectations for what you should be offering or charging.
Whether it is advice or assistance in the residential or commercial property management department that you need, Roger Hannah & Co have a wealth of experience that could help you secure those good tenants for years to come. Please get in touch to find out more or see how we can help!