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Lease Renewal Strategies

Aliso Viejo Tenants Renewing with Their LandlordAs a single-family rental homeowner in Aliso Viejo, your wished-for tenant is one who plans to stay for many years. Frequent vacancies can disrupt your cash flows and even result in losing money on a property. Besides choosing the right tenant, there are likewise countless factors that you can – and should – do to encourage your tenant to stay longer. Opting to use these tactics, you may find it simpler than ever to make your rental income steady month after month, year after year.

Classified among the initial ways to improve tenant retention is to be certain that you have good communication with them. This includes communicating about their intentions to renew or not. It’s essential to start addressing the issue of lease renewal well before it expires. In many states, landlords are required to give at least 30 days’ notice. Though it’s an even better idea to start the renewal process even earlier than that. Few tenants enjoy feeling pressured, tricked, or being forced to decide on a lease renewal with less than a month to figure it out. If you attempt to wait until their lease renewal is right up against the deadline, you may miss a tenant who may have otherwise remained in the home.

Along with good communication, some of the most effective lease renewal strategies offer tenants an incentive for remaining. This incentive could be part of countless things. For instance, perhaps your tenant is uncertain about renewing for a full year. Consider offering 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 idea is to offer your tenant a renewal at their current rate. This may be particularly inviting if rental rates have gone up a lot in your local market. While this may not always be feasible for you, it’s something to keep in your lease renewal toolbox. A tenant who feels like they have options are more likely to wish to remain where they are.

Another way to incentivize your lease renewal is to offer to make improvements on the property. This works specifically well if your maintenance plan includes scheduled upgrades you were preparing to do anyway. Make sure your tenant realizes which aspects of the property will be updated to offer them added incentive to remain. For a more proactive approach, start making small improvements to the property a few months before the lease is due to expire. Along with actively maintaining the property while the tenant is dwelling there, you are conveying a definite message that you are mindful about not only as regards your rental home but also regarding their contentment and satisfaction, likewise.

Lastly, just in case you are still chasing down your lease renewals in person, consider switching to a more efficient digital approach. Several tenants enjoy being able to do practically everything online, and lease renewals are no different. Give your tenant access to the renewal documents well ahead of the renewal deadline. Then visit with them to find out if they have any queries or issues.

Just granting your tenants the capacity to complete lease renewal documents online may greatly increase your chances of renewal. Furthermore, taking your business online will allow you to keep better track of your renewal rates and other important data. With effective facts and information in hand, you can more correctly choose the lease renewal strategy that will work great for your case and tenants.

Consistency in your lease renewals may take some time and effort, although it’s worthwhile. By knowing a few effective lease renewal strategies and approaching your tenants will flexibility and planning, you can greatly improve your chances of keeping that great tenant in your rental home.

Do you love the income of a rental property but struggle with keeping up on all the tasks involved, like renewal? Contact Real Property Management Agile to speak with an Aliso Viejo property manager and see what we can do for you! You can call us at 949-503-5300 or contact us online.

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