While most of the American residential rental market has settled into a vacancy rate of around 6.5%, Illinois vacancy rates remain high across the state. So, if you're a Vernon Hills property investor, you need all the help you can get to limit rental vacancies.
If you already have tenants in your property, the best way to do this is via lease renewals, provided they benefit you in the long term.
Read on for our best lease extension tips to help you thrive as a Vernon Hills property owner.
1. Work Toward Lease Renewals Consistently
Working toward lease renewals begins before your tenants even sign a lease agreement. When you set up your initial agreement, you are setting the standard for many years to come.
It's tempting to set low rent prices to attract tenants at first, but you must ensure you can cover your costs, especially since rent increases are regulated in Illinois.
Once your tenants have signed up, the real work begins. Some of the most effective tenant retention strategies include:
- Attending to requests promptly
- Taking care of routine maintenance
- Interacting positively with your tenants
Remind them about upcoming lease renewals well in advance. One of the most effective renewal negotiation tactics is offering an incentive for tenants who extend their leases.
2. Evaluate Your Needs
Always consider your business strategy before committing to your tenants for another year. Are you considering selling your property, or do you intend to grow your portfolio?
These aspects may affect the terms of your lease. A potential sale means you should consider a shorter lease term.
If you're expanding your business, you might not be able to offer them the hands-on attention you have before. If you're considering upgrades to your property, you will need to increase your tenant's rent accordingly.
An experienced property manager can help you navigate these intricacies and help you do what's best for your business.
3. Study the Rental Market
Learning everything you can about your local property market isn't only important when you're marketing your property to new tenants. It's a vital part of ensuring you keep the tenants you have.
Carry out a rental analysis of surrounding properties before implementing any rental agreement updates. Comparing your prices and amenities with similar properties will provide you with important guidance when setting new lease terms and implementing rent increases.
If your tenants can get better value for money elsewhere, they will. If your property offers your tenants a good deal, they're more likely to renew their lease.
Avoid Property Vacancies With Expert Property Management Services
Encouraging lease renewals for your rental properties requires thoughtful planning and ongoing effort. A property manager can help streamline these processes.
PMI NVP Estates delivers top-tier property management services to landlords and tenants in the Vernon Hills area. We use the latest technology to ensure seamless communications and services while striving to maintain the value of the properties in our care.
Browse our blog for more of the best property management insights and find out how we can help you make the most of your Vernon Hills investment properties.
