By Property Management Systems
December is a great time of year for many people because of the holidays but it’s also a hectic time of year for most landlords because they may have tenants with leases up for renewal.
Thankfully, lease renewals no longer have to be a problem for any landlord if these tips are followed.
Smart Lease Renewal Tips
Tip 1 – Start the Lease Renewal Process Earlier
One of the best things you can do as a property owner is connected with your tenant at least three months in advance before their lease is set to expire and ask them if they plan on renewing their lease for a new term.
Most tenants will want to renew their leases if they are comfortable and happy living in a rental property so this 3-month window will also give you ample time to negotiate rent increase as well too.
To ensure that you meet with your tenant at least 3 months in advance before their lease expires you should use tools like Google Calendar or Outlook to set up simple alerts which will notify you when your tenant’s lease is set to expire.
Tip 2 – Ask the Tenant to Sign the New Lease When They Accept It
You just spoke with your tenant and confirmed that they want to renew their lease. After you provide them with a copy of the lease you should give the tenant 24 hours to get the new lease signed.
This step will ensure that your property remains rented and if the tenant backs out of signing the new lease you can reduce the time that your property sits vacant since you can easily connect with new tenants before your tenant’s lease is set to expire.
Tip 3 – Offer Incentives to Your Renter
Last of all, but most important, don’t hesitate to offer your tenant a few incentives if they renew their lease.
Some of the incentives you might consider could include free gym memberships, gift certificates, coupons to local restaurants and free cable or internet access for 6 months in your rental property.
More Tips for Making Lease Renewals Hassle Free
The truth about lease renewals that most landlords won’t admit is that the lease renewal process should “technically” start as soon as the tenant moves into their rental property by building a great relationship with the tenant that will make them not want to move once their lease comes up for renewal.
Building a great relationship with your tenants means that you’re doing the following:
- Offering excellent customer service and support.
- Fixing problems in the rental as soon as they are reported
- Keeping promises and showing the tenant that you value their business.
If after you’ve built a great relationship with your tenant and found that they are indicating a lack of interest with renewing their leases you should follow these additional tips for making the lease renewal process hassle-free.
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Offer Discounts
You can build a discount into a lease renewal. A popular way is to offer exponentially discounted rent for longer lease terms. For example, lease agreements for six-month rents will be more expensive than lease agreements for five years’ rent. You can also offer a discount like a lower payment on their first month of renewal or even wave a month’s worth of fees for parking. If residents are going to save money, not just from the costs associated with moving, but on their rents, they are much more likely to renew their lease agreement.
- Upgrade Your Property
Adding new amenities to the property, upgrading the appliances in their apartment or condo, or simply painting the building, can be extremely attractive to current residents. If you invest in your property to keep it updated and competitive with newer properties, your residents will be inspired to stay to enjoy all the newest features.
- Come Up with Clever Incentives
If you can’t upgrade your property features this year or afford to offer big discounts for lease renewals, there are smaller ways to encourage your residents to stay. Resident appreciation days, gifts, and events can make your residents feel like they are valued by your company and will be more inclined to renew their rental agreement.
Get Help with Lease Renewals
Need help with lease renewal? For professional property management contact Property Management Systems today by calling us at (503) 515-3170 or connect with us online.
