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Lease Renewal Strategies

Camarillo Tenants Renewing with Their LandlordAs a single-family rental homeowner in Camarillo, your ideal tenant is someone who expresses the desire to stay in your rental home for many years. Frequent vacancies can interrupt your cash flows and even make you lose money on a property. Choosing the right tenant is only half the battle; there are steps that you can take to make sure your tenant stays longer. If you want to achieve a steady flow of rental income, these strategies will guide you towards that goal.

One way to improve tenant retention is to guarantee that you have good communication with them. Included in that is the conversation about whether or not they have intentions to renew. It’s significant that you talk about lease renewal before it expires. Landlords are mandated to give at least 30 days’ notice in many other states. However, starting the renewal process earlier than that is an even better way to go about it! Few tenants enjoy feeling pressured, tricked, or being forced to decide on a lease renewal with less than a month to figure things out. Best to discuss lease renewal way before the deadline so that you don’t risk losing a tenant who would have otherwise stayed.

Along with good communication, great lease renewal strategies offer tenants an incentive for staying. This incentive can be whatever the landlord wants it to be. Say, for example, a tenant is on the fence about whether or not to renew for a full year. Try 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. Or, you could even offer the renewal to your tenant at their current rate. This offers some form of stability and consistency, especially if the rental rates in the local market have shot up. This incentive for lease renewal might not be the best there is, but it’s definitely a start. This allows your tenants to have options they can choose from, and it shows them that you care about their interests, as well.

Offering to make improvements on the property is also a great way to incentivize lease renewal. This is very effective, especially if your scheduled maintenance plan already includes an upgrade or two to the property. This will offer your tenants an added incentive to stay. Just make sure you make it clear to them which part of the property is getting an update. For an even more proactive approach, start making small improvements to the property a few months before the lease is due to expire. Actively maintaining the property sends a clear message to any tenant that you genuinely care for your rental home, but that you also care about the satisfaction of your tenants.

In conclusion, make sure you aren’t wasting time dealing with your lease renewals by going after them in person. If so, it’s time to switch to a more efficient digital approach. Tenants, for the most part, will have been accustomed to doing everything online; thus, lease renewals shouldn’t be any different. Upload those renewal documents online so that your tenants can access them at their convenience. But, do this early; not when the renewal deadline is already around the corner. Be available if they have any questions or concerns.

Being able to access and process your lease renewal documents online will make it very convenient and easy for your tenants, hopefully leading to better chances of renewal. Also, taking your business online will allow you to keep better track of your renewal rates and other important data. With better information to guide your decisions, you can effectively choose a lease renewal strategy that will be appropriate for your situation and tenants.

Consistency combined with some time and effort can do wonders for your lease renewals. 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 love the income of a rental property but struggle with keeping up on all the tasks involved, like renewal? Contact Real Property Management Limitless to speak with a Camarillo property manager and see what we can do for you! You can call us at 805-702-7800 or contact us online.

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