Sometimes the wait to get a new Tenant may take longer than anticipated thereby occasioning lost of rental income. To avert such scenario, every landlord or property manager must know how to retain their tenants even after rent review. Below are tips on how to increase rent and equally retain your tenants.
- Communicate the intention to increase rent long before the expiration of the current lease – if you inform your tenant of the increment ahead of the expiration of the current lease he will be in a better position to prepare for the payment of the new rent.
- Implement a gradual increment – to retain your tenants after increasing the rent you must ensure that the amount added is not outrageous and the best way to achieve that is to increase the rent in piecemeal.
- Give opportunity for installment payment – giving your tenants the opportunity to pay rent in instalment will help relieve the cost of paying the reviewed rent and increase the chances of them retaining the lease.
- Increase the value of the property before rent review – tenants want to see the value for the extra pay thus carrying out renovation or other activities capable of increasing the value of the property will help ensure you retain your tenants even after rent review.
- Offer incentives for early payment of the new rent- to retain your tenants even after increasing the rent you need to device a mean of rewarding early payment. The incentive or reward is what will give them the reason to pay the new rent.
- Always have prospective tenants – another way to ensure you do not lose your rental income after rent review is to always have prospective tenants on standby. Knowing that people are on standby to take the property is enough to make your tenants to pay the new rent without hissing.
SUMMARY
It is important to retain your tenants after making increment in rent to avoid losing your rental income. To achieve that you need to consider the following;
- Communicate the intention to increase rent long before the expiration of the current lease.
- Implement a gradual increment of rent.
- Give opportunity for installment payment.
- Increase the value of the property before rent review.
- Offer incentives for early payment of the new rent.
- Always have prospective tenants.
