How to Earn a Lease Renewal from Tenants

Finding great tenants can be daunting. Therefore, finding tenants who take good care of your rental property, pay rent on time, and strictly adhering to the lease agreement is a dream come true for most tenant management companies or landlords.

However, as a landlord, what are you supposed to do when the lease agreement comes to an end? If you kept the tenants happy, they would happily oblige if you ask them to renew their lease. On the other hand, if you weren’t a great landlord yourself, it will be challenging to convince them to stay longer. Fortunately, you can always look for other tenants.

Advantages of Renewing a Lease

There are several benefits you can enjoy after a successful lease renewal. Here are the most common.

More Predictability

Renewing a lease will help you with the trouble of looking and adjusting to new tenants. Your current tenants are aware of what the lease entails and what the Salinas property management expects of them.

Saves Time

When you retain a tenant, you save a lot of time that you would have spent looking for new tenants, posting advertisements, going over lease clauses, and showing the property to potential clients.

Saves You Money

After a successful renewal, you do not have to look for new tenants. As a result, you don’t need to prepare the rental property for a new tenant. During preparations, you have to apply new paint, re-stain the floor, check the plumbing, etc. All the above require money.

It becomes easier to increase the rent.
In most states, tenant management companies cannot increase the rent unless the tenant’s lease is due for renewal. In the new agreement, you will highlight the new changes, and if the tenants agree, they will renew the lease. They will vacate the premises if they disagree with them.

How to Earn a Lease Renewal from Tenants

When tenants vacate your property, you lose rent. Therefore to avoid such a situation, you need to convince them to renew their lease.

The primary purpose of a lease is to protect both the tenant and the landlord. Each gets to understand their responsibilities. It also states the amount of rent to be paid and the collection procedures.

Below are tips on how to earn a lease renewal from tenants.

Tenant Management

Dealing with tenants can be demanding. However, to effectively manage your tenants, you need to keep them happy and satisfied. Practical tenant management help foster strong relationships between you and your tenants. As a result, the tenant turnover rate drastically reduces. Below are some management tips that you should try.

Screen Your Tenants

It is advisable to screen potential tenants before you can allow them to rent your property. The screening process must be serious and strict. The first step is to ask them to fill a rental application form. You will know whether they qualify to be your tenants, depending on the answer they give.

The most common and important questions you need to ask a tenant include:

• How much is your monthly income?

• How many people will you be living with?

• Do you have pets?

• What is your source of income?

• Did your previous landlord evict you, and why?

• Are you willing to sign a lease agreement?

• Have you been convicted of a crime before?

Ensure that you verify the responses by doing a criminal background check, contacting previous landlords, and current employer.

Ensure That the Lease Agreement Is Detailed
When it comes to full service property management, a lease agreement is essential. To serve its purpose, it needs to use a simple language that both parties can understand. It should cover lawn maintenance, pest control, pet clause, parking, property use, and subletting.

Most importantly, a lease agreement must mention the consequences a tenant is likely to face if they don’t pay rent or adhere to set guidelines and rules.

Be Professional

As a property manager or landlord, you need to maintain a strictly professional relationship with your tenants. As a result, they will respect and take you seriously. Do not hesitate to evict a renter if they go against the guidelines of the lease agreement.

Additionally, you need to put a proper procedure for collecting rent in place. Tenants need to know when rent is due and which method they can use to pay.

Offer Incentives

As a landlord, it is essential to remember that you are not the only owning a rental property. Therefore, to increase the chances of a tenant choosing your property, you need to something unique extra.

A good gesture, despite how small, can boost your tenant retention rate. For instance, you can do the following to ensure that your tenants renew their lease.

• Offer a discount on rent if they sign a two-year lease.

• Replace doors.

• Re-paint the property.

• Pay for landscaping.

• Pay for some minor repairs.

• Install new flooring, etc.

It is advisable not to promise upgrades that are far within your reach.

Allow a Grace Period for Rent Collection

Even though the rent deadline should be strictly adhered to, allowing a grace period can be beneficial. Tenants will become more comfortable renting your property if they know you are not a tyrant. If you are too strict on your tenants, the chances are that they will find another landlord who is understanding and lenient.

Address Any Complaints Quickly

Once you address the complaints of your tenants, it becomes easier to earn a lease from them. It is because they know they know you value and appreciate them.

Ensure that you resolve all complaints the same day or within a week. The happier the tenants are, the more they are likely to renew the lease. Also, make sure that you give your contact information to tenants when they move. It will be easier for them to contact you when they have a complaint or an emergency.

Ensure Regular Maintenance of the Rental Property

Full service property management keeps your rental property in good condition and can help improve its aesthetic appeal. You can plant flowers or repair worn out roofs, doorknobs, appliances, etc.

Frequent maintenance eases the frustration of tenants, making it difficult to vacate.

Inform Them of All Rules and Regulations Before They Move In

Letting potential tenants understand your set rules and regulation before they rent avoids confusion in the future. If they disagree with your rules, they will look for other options.

To earn a lease renewal from your tenants, you can ask them. Most Salinas property management companies wait for renters to show interest in renewing their lease agreement. However, the truth is that most tenants wait for property managers to remind them.

From the above, it is evident that renewing a lease can save a lot of your time and money. Following the above tips will help convince your tenants to renew their lease and, as a result, increase your occupancy rate.