Your residents choose to live in your community. When their lease ends, they need to decide if they will continue to live with you or if they’ll move on to another building. If they want to stay in the area, they’ll likely also need to consider are cost, services and convenience.

Cost drives a significant number of moves. According to the Zillow Group Consumer Housing Trends Report 2019, 78% of renters experienced a rent increase and over half of renters (55%) indicated that a rent increase affected their decision to move.

Property managers can set their communities above the rest with services and convenience — to encourage residents to renew their lease for another term.

Incentives are not what they used to be, primarily because market conditions and expectations have shifted, and offering the right incentives for lease renewals is more important than ever to capture the attention of today’s busy renters.

Here are five incentives to encourage lease renewals.

1. (Smart) home upgrades

For a relatively low cost (especially compared to the cost of turning an apartment home!) you can give residents and incentive to stay by offering smart home technology upgrades — like Google Home or Amazon Alexa — or smart lighting, switches and thermostat upgrades. In addition, what do your residents wish they had in their homes but don’t? Is it a ceiling fan? Maybe a new stove, some new shelving on the walls or even a bathroom that's freshly painted in a calming shade of blue? These upgrades can be used as incentives for your residents to stay another year and make them feel a deeper sense of ownership and connection with your property.

2. Social perks

Your residents are more likely to renew if they are socially engaged and have friends in the community. Consider offering a few social perks as an incentive for renewal. Whether that’s luxury pool experiences or a fun dinner experience with a local chef, give your residents a reason to stay with experiences that connect them to other people in the community. They could even share an Instagram story of the event and get their friends interested in your community!

3. Parking

Parking is a regular source of auxiliary income for many property management firms. However, think about offering a few months of free parking instead of a free month’s rent. Alternatively, you can create some VIP parking spaces by adding a cover to spots that may be exposed to the elements or converting a couple of guest spots into special parking that your residents would love to use — if they renew their lease, of course.

4. Extra services

Consider including free cable for a few months or laundry and dry cleaning vouchers. Other local businesses are also great potential partners because they can help create offers that sweeten the renewal deal. For the property manager, the resident remains in your community for another year; for the local business owner, the resident becomes a customer. It’s a win for everyone — property managers, business owners and residents. Laundry, car washing and other local services can be beneficial to both resident renewal efforts and local businesses who are looking to improve their bottom lines.

5. Customer service

Dan Haefner, president and chief operating officer of CFLane, agrees that the biggest selling point to a possible renewal is customer service. He describes to Multifamily Executive how exceptional customer service makes a huge impact, saying, “My personal integrity and how I treat other people is probably the most paramount thing to who I am. I take great pride in trying to be the best I can, not only for myself and the people I interact with, but because that’s how people judge me.”

To ensure your renewal incentive is a reflection of the community’s integrity and excellent customer service, property managers can seek opportunities to better serve residents and improve the services they already provide. Residents want to be treated like people, not just a means to fill a unit. Choosing the right renewal incentives can help residents feel like valued members of the community.