If a tenant pays the rent on time, takes care of the property, obeys the rules, and adheres to the lease agreement, of course, you want that tenant to stay long-term. It’s a no-brainer. After all, only occupied rental units make money, and finding new tenants costs time and money while creating a lot of hassle for the owner or property manager. So, to help ensure your good tenants renew their lease, follow these five strategies.  

Broach the subject first and ASK early rather than late.  

Instead of waiting for the tenant to approach you, take charge of the situation by asking tenants about their plans at least three months before the lease is set to expire. Don’t hound them daily or make a pest of yourself but bring up the matter of the lease expiring in XX number of days. You may ask via email, a written letter, or in a face-to-face conversation. Consider the tone of your owner/tenant relationship when deciding the way to bring up the matter.  

Do not show up empty-handed. 

Renewal incentives come in all shapes and sizes, including: 

• • Extended lease offers: For those willing to sign a two-year lease, offer a rent freeze or other incentive.  
  • Upgrades: Detail what upgrades you will make in the next XX months, at no additional cost to the renter, for a lease renewal signed by a particular date. Anything from a fresh coat of paint to the installation of a washer and dryer, upgrades can sway a good tenant toward lease renewal and add value to the property.   

Be willing to negotiate. 

Give serious consideration to a tenant’s “if only” statements. For instance, a tenant may say, “I’d consider renewing my lease if you would update the bathroom.” Or replace the kitchen floor, spruce up the landscaping, or any number of fixer-upper requests. Remind yourself that great tenants are worth the investment these improvements will cost. But, of course, do not knowingly promise more than you can afford or accomplish in an allotted time.  

Incorporate technology into your rental property and processes. 

The name of the game these days is convenience, which means your tenants will appreciate paying their rent online and communicating with you via digital means. Smart devices such as keyless entry and thermostats will also get a favorable nod from today’s tech-savvy consumers. By showing you care about making their lives simpler, you will earn points when it comes to leasing renewal decisions.  

Build relationships. 

Remember that relationship building will play a key role in getting tenants to renew their lease over the long term. Folks want to rent from someone who cares about them, who knows their children’s names and that of their furry friends. Knowing your landlord is credible, trustworthy, and treats you and your family with respect provides an incredible incentive to extend the current lease agreement.  

Bottom line: Happy, satisfied tenants will be much more likely to sign on the dotted line when lease renewal time rolls around.   

About Rentals America 

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.