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Lease Renewal Strategies

People sitting at a table signing a lease renewal agreement.As a single-family rental homeowner in New Braunfels, your ideal tenant is one who proposes to remain for an extended period. Frequent vacancies may affect your cash flows and even lead to a loss of money on a property. Nonetheless, by implementing effective lease renewal strategies, you can ensure a steady rental income, which will generate confidence in your investment and promote a sense of financial security.

On top of choosing the right tenant, there are also numerous actions that you can – and should – take to encourage your tenant to stay longer. With the implementation of these methods, it may be simpler to keep your monthly rental income steady annually.

Begin the renewal process early

One of the initial ways to improve tenant retention is to guarantee that you have good communication with them. This encompasses communicating about their intentions to renew or not. It’s crucial to begin addressing the issue of lease renewal well in advance of its expiration, giving you a sense of control and proactiveness in managing your rental property.

In numerous states, landlords must give at least 30 days’ notice. However, it is more advantageous to start the renewal process earlier. Tenants generally do not appreciate being compelled to decide on a lease renewal, as they often feel pressured, deceived, or compelled to make a decision.

If you attempt to delay the lease renewal until it is imminently approaching the deadline, you may lose a tenant who may have otherwise remained in the residence.

Incentivize tenants to renew their lease

Alongside good communication, some of the most practical lease renewal strategies offer tenants an incentive to stay. It is crucial to provide something valuable to your tenants to foster a sense of appreciation.

For instance, your tenant is hesitating to renew for a full year. Consider granting them more 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 alternative is to offer your tenant a renewal at their current rate. This may be particularly alluring if rental rates have gone up a lot in your local market. Although this may not always be practicable, it’s something to keep in your lease renewal toolbox. Tenants who perceive themselves as having alternatives are more likely to want to stay where they are.

Upgrade your property to keep tenants

Another approach to incentivize your lease renewal is to offer to make improvements to the property. This may involve the installation of new fixtures, upgrading appliances, and repainting. This can serve as an additional incentive for them to remain and exhibits your dedication to maintaining a high-quality rental property.

Ensure that your tenant knows which aspects of the property will be updated to provide them with an additional incentive to stay. For an even more proactive method, make minor improvements to the property a few months before the lease expires.

By actively maintaining the property while the tenant is living there, you are conveying a clear message that you care not only about your rental home but about their pleasure, too. This sense of duty and care can dramatically contribute to tenant retention and your overall success as a rental homeowner.

Provide online access to renewal documents

Lastly, if you are still chasing down your lease renewals in person, it may be beneficial to transition to a more efficient digital approach. Most tenants appreciate the convenience of doing almost everything online, and lease renewals are no different. By granting online access to renewal documents, you can offer your tenants the convenience of reviewing and signing their lease from anywhere, anytime; this can streamline the renewal process.

Simply offering your tenants the ability to complete lease renewal documents online significantly boosts your chances of renewal. Additionally, taking your business online will enable you to track your renewal rates and other critical information better. By acquiring more accurate information, you can more effectively choose the lease renewal strategy that is most suitable for your tenants and circumstances.

Consistency in your lease renewals may take some time and effort, but it’s worth it. 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 appreciate the income generated by a rental property, but do you find it difficult to manage the numerous responsibilities that come with it, like renewal? Contact Real Property Management LoneStar to speak with a New Braunfels property manager to determine what we can do to assist you! Call us at 210-314-1039 or contact us online.

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