How long are your rentals sitting vacant after tenants leave? The average time rentals sit vacant is 32 days. By generating lease renewals, you won't have to worry about the cost of vacancies.
In fact, 62.7% of renters renewed their leases in 2022. Retaining renters will save you money on tenant screening, marketing, and vacancies.
Not sure how to ensure a smooth lease renewal in Fredericksburg, VA? Read on for effective lease extension tips to ensure your success!
1. Review the Agreement
Before encouraging a rental agreement renewal, review the tenant's current agreement. This will help you determine what needs changing or updating.
Consider if you had any issues with the tenant last year. You may need to reinforce your rental rules in the updated agreement. This can include rules about late rent payments or payment grace periods.
Otherwise, research Fredericksburg's rental market. Recognize what home upgrades new rental properties are offering that your properties lack.
Complete a rental analysis before adjusting your rates. This will ensure you're getting the best value for your property and appealing to local renters. For example, Northern Virginia saw a 13% rent increase over the past 12 months.
2. Send the Lease Contract Renewal
After reviewing the agreement, send the tenant a reminder that their lease is up for renewal. Try to send this notice 60 to 90 days in advance. This will give your tenants time to consider their options.
You can use your online tenant portal to automate this process. The lease contract renewal notice should mention:
- The new proposed rental rate
- Changes to the lease agreement
- The lease terms
Remain flexible by offering different lease term options. This includes a monthly, one-year, or two-year term. Your flexibility will appeal to a broader group of renters with different needs.
3. Apply Renewal Negotiation Tips
Remain open to negotiating with renters about their new lease. Be professional, empathetic, and patient. This will help you build strong tenant relations, leading to better outcomes.
When negotiating:
- Start early
- Evaluate your needs
- Gather market research
- Document property conditions
- Review the lease terms
- Remain flexible
- Prepare for alternatives
To ensure a smooth lease renewal, consider outsourcing this process. A property manager can handle these negotiations on your behalf.
4. Offer Incentives
Offer incentives to encourage tenants to stay. This will show them how much you value them. Effective incentives include:
- Discounts
- Rent credits or a free month of rent
- A gift card to a local store
- Free property upgrades
Look for ways to improve resident experiences. For example, you can provide smart home technology or host resident events.
Otherwise, make sure to complete maintenance requests quickly. This will show tenants that you care about their needs.
5. Finalize the Rental Agreement Renewal
After reaching an agreement, send your tenant their new lease. Provide them with a copy of the finalized agreement. You can give them digital access through your online tenant portal.
Generate More Lease Renewals Today
Encouraging lease renewals will increase your occupancy rate and earning potential. Use these tips for a smooth lease renewal process. Remember, you can always ask for help.
Our team at Guaranteed Exceptional Management Realty Group is the premier property management company in Fredericksburg. We redefine industry standards through our exceptional services.
Trust our proven business processes, integrity, and professionalism. Contact us for a free management quote.
