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There is being a landlord, and then there is being a San Jose landlord.
This unique and vibrant part of the world, with its proximity to Silicon Valley, makes it an exciting prospect for anyone in real estate. Yet that also brings challenges, like ensuring you get the income you expect from your property.
One of the best ways to achieve that is to have a reliable tenant who pays on time. So read on as we reveal some of the best strategies for lease renewals.
Offer Incentives
If you want a good tenant to stay in your property, you've got to give them a compelling reason to do so.
An incentive can help with lease renewals. You could offer a financial perk, like a discount on the first month's rent or a commitment not to raise your rates for the new lease.
You could also offer an incentive that makes your property more appealing, like providing a budget for your tenant to do some cosmetic upgrades to the interior. You could also upgrade any older appliances for your property.
Improve Your Communication
Tenants are more likely to stay if they have a good relationship with you. Make an effort to communicate with them, such as always returning a tenant's call as soon as possible.
Ensure you offer a contact point for your tenants to call 24/7 so they don't have to worry about issues when you are away. A rental property management team like ours can help you with that.
Offer a More Flexible Lease
When landlords first create a lease, they often design it to protect their income and the property.
That makes sense. But if you have found an excellent tenant who pays on time and looks after your rental, you can afford to make that lease more flexible, which may entice them to stay.
Waive fines and fees in the lease or provide more flexible lease periods, such as a rolling monthly lease instead of a fixed term.
Be Reasonable With Rent Increases
Inflation is high, energy costs are up, and there is a growing demand for rentals in San Jose.
Those factors taken together mean landlords will want to raise their rent. While that may be true for you, you must balance it against the desire to hold onto a trustworthy tenant.
Check whether you can afford a smaller rate increase or perhaps delay the rise for six months.
Improve Your Property Upkeep
You don't need to pay for a complete property upgrade when maximizing lease renewals.
You can commit to more regular upkeep. For example, you could pay for a gardener or a cleaner or arrange for someone to visit each month to clean the windows.
Making your rental well-cared for will show a tenant that you value them and want to provide the best living environment.
Lease Renewals: Protecting Your Income
Lease renewals for trustworthy tenants are worth the effort. However, in a competitive market like San Jose, you need to go the extra mile to stand out. Use these lease renewal tips to help guide you.
Provident Property Management is a company with close ties to San Jose and unrivaled knowledge of this unique real estate market. Find out how our property management services can help you.
