As a landlord in Dubai, having to find a new tenant can be costly. Retaining a quality tenant is a great way to control your property costs for a number of reasons. Let us explain how to persuade tenants to renew the rental lease.
First, let’s focus on the basics…
Why do tenants move?
- Income loss. One major reason why tenants move is that their financial situation has changed. For example, they have lost a job, their business is not doing well, or they are looking to increase their savings.
- Market price changes. When the supply of units exceeds the demand, prices drop and tenants may seek to move to another apartment that comes at a lower price.
- Looking for a bigger space. Another reason they may be looking to move is that they want a larger space. Maybe their family has welcomed a baby or their income has considerably increased.
- Job location change. Once employed, you are never guaranteed that you will be stationed at your current location forever. A tenant may get a promotion or even get a new job located somewhere else. It makes sense that they might move to a location near their workplace.
- Maintenance problems. They may feel aggravated staying in a house plagued with plumbing issues, pest problems, or a leaky roof. These may not only cost you money but also harm your property’s reputation.
- Neighbor nuisance. If a tenant doesn’t feel like their home is a sanctuary, courtesy of a noisy neighbor, they may want to move. To effectively counter this problem, ensure you thoroughly vet the individuals coming into your property.
Understanding the reasons your tenant might want to move, will help you decide how to address the situation.
Now, why is it beneficial to renew the rental lease with an existing tenant? There are various costs and time considerations that come up between the time a tenant leaves and a new one comes in. For example:
- Freshening up the unit after a tenant has moved (small damages, wear and tear)
- Paying for a real estate agent or marketing the unit yourself
- Screening tenants
- Showing the unit
- Signing a new rental lease
- Answering questions and solving issues that a new tenant may have
Get your good tenants to stay for as long as possible
Here are four things you can do to persuade a good tenant to renew the rental lease agreement:
1. Talk to them before the lease expires
The single most emphatic way is simply letting them know you would be happy if they stayed longer. Kick-starting the renewal process three months in advance will offer you a rare window of opportunity to know whether they are interested in staying or not. If they don’t wish to stay then you can start seeking new tenants rather than sitting and risking a vacant house.
2. Improve the offer
If they say they are thinking of moving and you would like them to stay, come up with creative ways of providing incentives.
These incentives may come in the form of;
• Early payment discount
• Rent decrease
• Property upgrade
• Flexible lease terms
• Partial security deposit
3. Address their issues promptly
As a landlord, you have a full-time commitment to your property. A good idea would be to set up an efficient grievance resolution system. Don’t forget to include in the lease how a tenant can make such a request and the expected response time. No matter the mode of communication, respond promptly to all their requests and provide a time frame for when the matter should put to a rest.
Emergencies may crop up from time to time. Let the tenant know that it’s not a big deal to call you in the middle of the night if there is an urgent issue.
4. Make tenants feel welcomed
If you ask tenants in Dubai, most of them would not be able to tell you much about their landlord. This is simply because there is often a middleman taking care of the relationship.
To retain good tenants you should make them feel like you appreciate them. Send them wishes or even an inexpensive gift for their birthdays, Christmas or Eid. Thank them for being tenants and paying their dues on time. Of course; always keep clear boundaries with your tenants. Don’t do things without prior notice as they may take it as an invasion of privacy which may scare even the best tenants away.
In conclusion
As a landlord in Dubai, the way you treat a tenant is crucial more than ever. More people are reading online property reviews before they even visit a property and you don’t want yours to be rated badly. Instead, you should focus on creating a strong relationship with your best tenants to avoid unnecessary hassles. With the above tips, you should have no problem convincing your tenant to renew the rental lease agreement.
If you do not want the hassle of dealing with tenants, you can always look at renting your apartment to Blueground. It is an award-winning real estate company that handles long-term leases for over 200 properties in Dubai. Let Blueground be your perfect, stress-free tenant so you don’t have to deal with the hassle of finding tenants yourself!
The Landlord Resources blog is Blueground’s information hub for landlords and property owners.
Through tailored articles, landlords can find relevant information relating to renting out their apartments, decorating, maintenance & renovation, property management and rental laws specific to their city.
