One of the hardest things about being a landlord is that good tenants don’t stay forever. You’re periodically tasked with finding new residents who will be a good fit for you and your property.
But you don’t always need to go through the breakup routine so quickly. In fact, here are several suggestions for successfully negotiating a lease renewal with your existing tenants:
Talk about it. Discussing the subject of lease renewal as early as possible will make sure your tenant is adequately informed about your expectations for the new lease period and give them plenty of time to think it through. Start about 60 days before the contract ends. If you intend to raise the price of rent, having more time will give you room to successfully negotiate terms that are acceptable to both of you.
Provide financial incentives. Some landlords return some or all of the security deposit, either in a lump sum or over a series of months, as a way to convince tenants to renew their lease. Don’t like that idea? You also could consider offering another type of financial incentive with a lease renewal.
Think about whether your rental is up to par. Do you have high tenant turnover? Consider whether there are some issues with your property that would prompt a renter to find an alternative place to live. You could also be charging too much based on the condition of your rental compared with other rental properties in the area.
Join professional organizations. Joining a local apartment owners or landlord association can help you learn what has worked for others at lease renewal time. You also may learn a host of other things that can help you be a successful landlord.