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Lease Renewal Strategies

Berkley Tenants Renewing with Their LandlordAs a single-family rental homeowner in Berkley, your ideal tenant is the individual who intends to stay for many years. Frequent vacancies can upset your cash flows and lead to losing money on a property. Getting the right tenant is one thing; keeping them is another. Take note of a couple of things you can do to make your tenant stay longer in your property! These strategies will hopefully help you keep the rental income steady, day in, day out.

It should be every landlord’s goal to improve tenant retention, and good communication is the way to go about it. That involves asking them if they have intentions to renew or not. It is vital that you have the discussion of a lease renewal with your tenants long before it even expires. According to the laws of some states, landlords are supposed to give at least 30 days’ notice. Regardless, nothing should stop you from making it even better by beginning the renewal process earlier than that. Few tenants enjoy feeling pressured, tricked, or being forced to decide on a lease renewal with less than a month to figure things out. If you talk to your tenant about their lease renewal when the deadline is already fast approaching, you may have waited too long and you’d lose someone that would have opted to stay if only they saw your offer sooner.

Other than good communication, other lease renewal strategies make use of incentives for staying.No two incentives have to be exactly the same — it all depends on the landlord, and what he/she is willing to offer. For instance, you’re dealing with a tenant who might have apprehensions about renewing for a full year. What you can do is offer them flexible terms, such as a 6-month lease, or give them a discount for signing a longer-term lease, often 24 months or more. Another would be to grant your tenant the renewal at the current rate. This could be very appealing, especially if there is a rise in rental rates in your local market. It may not always be the most profitable route, but it’s a lease renewal incentive that could possibly keep your income flow steadily. Plus, it puts options on the table for your tenants. This will also give them a sense of security under your care.

Consider incentivizing your lease renewal by offering to make improvements on the property. This will work well, especially if your scheduled maintenance plan already includes upgrades! Just make sure that your tenants know which part of the property is getting updated. This is a sure way to offer added incentives to stay. For an even more proactive approach, start making small improvements to the property a few months before the lease is due to expire. By actively maintaining the property while the tenant is living there, you are delivering a clear message that you care not only about your rental home but about their satisfaction, too.

In closing, don’t waste any time going after lease renewals in person. There are multiple ways to go for a more efficient digital approach. Your tenants will definitely want those lease renewals online because it’s convenient for them. You just have to ensure that the renewal documents are available to your tenants online ahead of the renewal deadline. Also, let your tenants know how to reach you if they have any concerns or questions.

Making your lease renewal documents available online could very well lead to bigger chances of renewal. Also, taking your business online will allow you to keep better track of your renewal rates and other important data. You can use this information to effectively choose the renewal strategy that will suit your situation and tenants.

When speaking of lease renewals, never forget this keyword: consistency. A bit of time and effort can go a long way! By knowing a few effective lease renewal strategies and approaching your tenants with flexibility and planning, you can greatly improve your chances of keeping that great tenant in your rental home.

Do you love the income of a rental property but struggle with keeping up on all the tasks involved, like renewal? Contact Real Property Management Advantage to speak with a Berkley property manager and see what we can do for you! You can call us at 248-259-2575 or contact us online.

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