What tenant wouldn’t love the lure of high-speed Internet and their own computer? This is one of the many incentives that investors and landlords offer to retain or reward long-term tenants. There are other incentives to retain tenants that are just as effective and cost the landlord a small fortune, such as gift cards to restaurants upon lease renewal or gift cards to furniture stores that extend existing leases. Savvy investors realize that empty houses, apartments, mobile homes, etc., are losing money every month that these are empty.
The same savvy investor also realizes that by extending the tenant’s lease, they are often able to extend the time to install new carpet, fresh paint and other cosmetic repairs that are often needed at residential turnovers. In addition to the cost of these repairs, there is also the issue of the timing of these repairs, as many of them cannot be completed in a day or two, leaving the apartment out of service for at least a week, if not longer. The bottom line is that the time an apartment is empty is lost basic income.
If you have an empty apartment or house, there are things you can do to entice a tenant to sign a lease. One thing that many potential tenants find attractive is to allow them to choose the color scheme of the walls and floors. Too many rentals only allow tenants to use white walls. Imagine the benefits of not only allowing them to have designer colored walls, but also doing the work for them. This is a great incentive for many tenants who like the idea of the final look, but not necessarily the expense or work that goes into creating that look. For many tenants, the ability to have the color of their choice when they move in is a huge benefit that should not be overlooked or ignored.
Another thing that tenants find helpful and appreciate are the little luxuries such as a dishwasher, garbage disposal, built-in microwave, washer or dryer. These things are luxuries that many people find worth signing a longer lease or even paying a little more each month. If you have the amenities to offer, a garage and carport are another great bonus for potential tenants. There are other improvements you can make to the property that will make it more attractive to long-term tenants. These include ceiling fans, a fenced-in yard for children or pets, and free cable TV. It’s these little touches that often attract tenants, and you’ll be surprised at the difference they make.
By providing your tenants with something that all other landlords in the area can’t, you stand out from the rest. You also create a “spoiled” tenant who, when it comes time to renew, won’t settle for what other landlords are offering. For this reason, he or she is likely to stick around for another six months or a year until the new lease is up, at which point you, as the savvy investor, can convince them to again name the price they are staying at and offer another beautiful incentive to keep your client happy and in place.