Across the US, there are 20 million rental properties. That's a total of 48.2 million individual properties. And each year, they all go through the same thing: lease renewals.
On the one hand, lease renewals mean a good tenant may be sticking around for another year. On the other, it brings up the uncomfortable conversation of increasing rent - among other things. If a landlord isn't careful with how they handle the lease renewal process, they could embitter an otherwise easygoing renter.
Looking for lease extension advice and lease negotiation tips? Look no further. Here are five tips for Beaufort, SC landlords to make the process as smooth as possible.
1. Make Lease Renewals Transparent
Honesty is the best policy, and studies have shown honest people flock together. Tenant lease renewals must begin with a crystal-clear picture of how next year will play out. No dissembling, no obfuscating policy tweaks.
This means not just clearly stating what has changed in the lease, but explaining it in clear language too. Post it on your online portal well in advance. Give your tenant a clear date of when they must sign it, and when it goes into effect.
2. Go Easy on Rent Increases
Rent is always going to increase with each passing year. That's just the nature of inflation, but that doesn't mean a rent increase needs to be heartless.
It's imperative that landlords be judicious about how much they increase. Find a good balance between profitability and reason. Tenants who obey the rules and pay rent on time deserve a fair shake.
3. Communicate Openly
Communication is key, especially as the deadline gets closer. Send text messages and make calls to keep tenants in the loop. Naturally, make your communication polite and forthcoming.
The last thing you want is to pressure them only when the deadline is fast approaching. Advance notice sprinkled over the course of months is the best policy. They're far less likely to forget or procrastinate reviewing the contract and signing it.
4. Incentivize Them for Staying
Many tenants choose not to renew to get lower rent elsewhere. Renewing is synonymous with a rent increase. It isn't worth it if there's no added benefit for that increase.
Find ways to incentivize your tenants to stay on for future years. It could be as simple as making parking free or allowing tenants to have a pet.
5. Invest in the Tenant's Experience
Always find ways to make the renting experience better for your tenants. This shows them that you care, improving future relations. It also improves the property and your listing, increasing its market value for future vacancies.
Renew Leases the Right Way at Stinger
Lease renewals can be tricky, so use these tips to make the process as painless as can be. Be transparent and communicate openly, while keeping rent increases at reasonable levels. Find ways to incentivize those long-term tenants to stay and invest in their experience.
Stinger Home Management is the leader in the Beaufort, SC area for property management. Our homegrown team has decades of shared experience and a dedication to integrity and accountability with our clients. See what your property is best for with our rent vs. sell calculator.
