You rely on your rental income to pay your bills, but interruptions occur when a tenant moves out. To combat this, you must focus on extending each tenant's stay in your units.
This process involves improving your lease renewals. After all, if you get a tenant to renew their lease, you'll have a paying tenant longer. But how can you improve this process?
You can take numerous steps to encourage your tenants to renew their leases and live there longer. Continue reading to learn some of the top ones.
Start the Renewal Process Early
When a new tenant moves in, you complete a tenant screening and approve the application.
Next, you ask them to sign a lease. The lease is a binding agreement that requires them to live there for a certain time, usually one year. When the lease expires, they can move out.
However, it would help if you aimed to keep every great tenant by asking them to renew the lease. One way to improve this process is by starting the process early.
Send the tenant a lease renewal request at least 60 to 90 days before the lease expires. Give the tenant some time to read and sign it. If they don't respond within a few weeks, contact them to determine their intentions.
You may hire a property manager to handle this for you. Property managers have excellent skills with tenant relations and may help you find effective ways to encourage tenants to renew their leases.
Offer Incentives for Renewal
If you have tenants who appear hesitant to sign their leases, consider offering incentives. Incentives, in general, motivate people to do things. In this case, they might motivate tenants to sign the extended leases.
For example, offer to keep their rent the same for the next year or offer to provide a rental property upgrade, such as new cabinets. Another incentive is to extend the rental payment grace period by a few days.
Make the Renewal Process Seamless
Many landlords work on methods to improve their rent collection process, but they forget to work on their lease renewal process. If you focus some energy on improving the lease renewal process, it might pay off.
For example, create an outline that explains the process and conditions. Offer digital options so they can handle it from home.
Maintain a Good Landlord-Tenant Relationship
Additionally, always strive to have a great relationship with your tenants. Provide timely tenant communication with them and offer consistent, reliable rental property maintenance.
Give them reasons to stay in their units, and they might be more likely to renew their leases.
Encourage Lease Renewals With These Tips
Lease renewals are an integral part of a successful rental property business. You'll collect more rental revenue if your tenants stay longer, so this is an area of your business to focus on.
Nassau County Property Management is a full-service property management company in Wantagh, NY. We offer excellent services for property owners and have decades of experience. We also provide real-time information to keep owners up to date.
Reach out today to learn more about our services and how they can help your rental property business.
