Solutions to Improve Your Lease Renewal Strategy

Good landlords understand that lease renewal is almost always a better option than searching for new tenants! Searching for tenants means time and money spent marketing the unit and screening applicants, and the added cost of a possible vacancy. Without a smart lease renewal strategy, you’re at risk of losing hundreds if not thousands of dollars in revenue while you hunt for quality tenants. Robert C. White & Company has put together this list of strategies to better position you for lease renewal success!

Here in June of 2022, we are still seeing Connecticut residential rentals are filled relatively quickly compared to years before COVID, but the housing market is changing, and tenants are being to test the waters again. Let's see if we can keep them in place, even if we are asking for a rent increase.

1. Request renewals at least 60 days out The first thing you should be doing to increase renewal potential is to start your request at least 60 days out! Well qualified tenants can find another unit easily, so contact them early to open lines of dialogue and see what you can do to improve their experience and get them to sign on for another year or more. Most landlords and property managers won’t reach out until approximately 30 days before the end of the lease, leaving less time to prepare marketing and maintenance if you don’t resign the same tenants.
   
   
2. Require pre-move-out notice of at least 45 days In your lease, it also makes sense to include language that holds tenants accountable for giving proper notice upon move-out. We suggest that landlords include a clause in their lease agreement that will automatically renew the tenant at the same rate for a year, or go month-to-month at a premium monthly rate. With a rent premium, you’re more insulated from the dangers of a month-to-month situation, where a tenant decides to leave in the off-peak rental season.
   
   
3. Make capital improvements Another fairly straightforward point is that looking to make capital improvements whenever possible will keep your tenants happier! If you’re making small improvements year after year, you’ll satisfy the tenant’s desire for improved living conditions with less of a chance of them moving on to something better.
   
   
4. Tenant surveys to find areas of improvement Want to improve the tenant experience? Surveys are a highly effective way to measure satisfaction and gain useful feedback from those that live at your property. Consider asking questions like has it been easy for you to pay rent and connect with us on maintenance? Are there small areas of improvement that would make you consider resigning at the same rate or paying slightly more in rent? Are you satisfied with the condition of the unit you’re renting? The answers will help you evaluate your tenant’s experience, analyze and make improvements, and hopefully retain them long term!
   
   
5. Minimize rent increases If your investment property is in good financial health, think about renewing tenants at a similar rate to what they are currently at! As we mentioned above, searching for and screening new applicants is always going to come at a cost, especially if the search results in a month (or more) of vacancy. Good tenants are hard to come by, so do your best to keep them by holding at a competitive rental rate. Robert C. White & Company typically recommends our owners seek a 1-3% rent increase a year.
   
   
6. Constant contact during the management process The lease renewal process, in reality, begins the first day a tenant moves in. For landlords to expect more lease renewals, they must create an enjoyable tenant experience. How do we do this at Robert C. White? By being a constant in their life! We find a way to touch base with tenants immediately after move-in (next day), two weeks later, and then monthly as they continue to rent. Keeping open lines of communication brings the tenants peace of mind and won’t let them feel forgotten! It also means that you are always informed on the condition of the unit and any urgently necessary fixes, as well as repairs that may be required soon.
   
   
7. Align leases with seasonality to make sure you’re in peak rental season  Aligning leases with peak rental season can do more than lock in a top rate for you, it may also give you a better chance at lease renewal. If a tenant comes to the end of their term in peak rental season, they will be searching at a time when other units are at their peak price too, and may choose to save a few pennies by staying put!
   
   
8. Open pathways to other properties you own This suggestion is for landlords that own multiple properties (even better if you have multiple property types). While you may not be able to “renew” every tenant lease in their current property, you still want to retain the best candidates. If quality tenants give their move-out notice, see if you can push them into another property that you own! Even if you have to offer a security deposit special or take a small hit on the rental rate at your other property, it may make sense to lock in high-quality tenants.

 There you have it! Simple solutions to improve your lease renewal strategy right now. RCW is working to build a community of landlords and property managers that treats tenants with care and increases their ROI at the same time! If you have success using any of these tips on your lease renewals, please leave us a comment to let us know how you found peace of mind.  And, if you're looking for help from a leasing agent or property manager, please reach out through the link below.