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Lease Renewal Strategies

People sitting at a table signing a lease renewal agreement.The ideal tenant for a single-family rental homeowner in Alcoa is someone who can commit to staying for a long time. Frequent vacancies can impose havoc on your cash flows and potentially cause you to lose money on a property. However, by implementing effective lease renewal strategies, you can ensure a steady rental income, which will give you peace of mind and make your investment seem more solid.

Apart from choosing the right tenant, there are also a lot of actions that you can – and should – take to encourage your tenant to stay longer. If you follow these steps, you may find it less complicated to keep your monthly rental income steady every year.

Begin the renewal process early

One of the initial ways to improve tenant retention is to ensure that you have good communication with them. One aspect of this is communicating about their intentions to renew or not. It’s vital to begin addressing the issue of lease renewal well before it’s due, giving you a sense of control and proactiveness in managing your rental property.

In many states, landlords must give at least 30 days’ notice. Yet, it’s more beneficial to start the renewal process earlier than that. Tenants never appreciate being pressured, deceived, or forced to decide on a lease renewal with less than a month to figure things out.

If you try to wait until their lease renewal is right up against the closing date, you may lose a tenant who may have otherwise remained in the home.

Incentivize tenants to renew their lease

Other than good communication, some of the most successful lease renewal strategies offer tenants an incentive to stay. The most important thing is to provide something valuable to your tenants and make them feel they matter.

For instance, your tenant is hesitating to renew for a full year. Think about giving them more flexible terms, such as a 6-month lease, or offer a discount for signing a longer-term lease, often 24 months or more.

Another option is to offer your tenant a renewal at their current rate. This may be an enticing option if rental rates have gone up a lot in your local market. Although this strategy isn’t foolproof, it’s something to keep in your lease renewal toolbox. When tenants are aware of their options, they are more likely to want to stay where they are.

Upgrade your property to keep tenants

Another strategy to incentivize your lease renewal is to offer to make improvements to the property. Installing new fixtures, repainting, or replacing the appliances might all fall under this category. This only demonstrates your dedication to maintaining a high-quality rental property, but it can also provide tenants with additional reasons to stay.

Make sure your tenant knows which aspects of the property will be updated to give them added motivation to stay. If you want to take it a step further, 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 sending a clear message that you care not only about your rental home but about their pleasure, too. Being a responsible and caring homeowner can have a significant contribution 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, think about shifting to a more efficient digital approach. Most tenants love being able to do almost everything online, and lease renewals are no different. By offering 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 enhances the possibility of renewal. Additionally, taking your business online will permit you to track your renewal rates and other crucial information better. If you have more accurate data, you can more effectively choose the lease renewal strategy that suits your needs and the needs of your tenants.

Steadiness in your lease renewals will need some work on your part, but it will be well worth it in the end. By being aware of a few effective lease renewal strategies and approaching your tenants with flexibility and planning, you can dramatically improve your chances of keeping that great tenant in your rental home.

 

Do you enjoy the money coming in from a rental property but find it difficult to stay on top of all the maintenance, like renewal? Get in touch with Real Property Management Marble City to talk to the property manager at Alcoa about your needs! Call us at 865-265-0535 or contact us online.

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