Monday, March 17, 2014

Lease Renewal Incentives

You've got a good tenant.  They keep the place up.  They pay their rent on time.  And their lease is almost up.  You want to keep them.  What can you do?

Well, you might want to think about cash.  The most effective way to do it is a rent reduction going forward. Oddly enough, that is even more popular than a stack of dollars, according to a survey cited in an article by Chris Clothier.

This picture seems particularly appropriate.
Other incentives include new appliances, new flooring, free cable and internet, and others, but none did the job as good as money.

It's important to remember that you want to minimize turnover as much as possible.  It's also important to remember that, after your good tenant moves out, you might get one like this.

Since I have a lease coming up soon, this information is particularly timely for me.