Record numbers of people are moving to Utah, with 60,000 just last year. As the population grows, the demand for rental properties continues to rise, making lease renewals a crucial consideration for property owners.
Property managers can capitalize on this opportunity. Whether you're a seasoned landlord or just starting, there's always an edge to take.
In this article, we'll discuss how to effectively navigate lease renewals. Keep reading to learn all about them.
1. Start the Conversation Early
When it comes to lease renewals, it's best to start the discussion as early as possible. Aim for 90 days before the lease expires.
In doing so, you'll provide ample time for negotiations, market research, and finding new tenants if necessary.
Professional property managers are aware of this since it helps to minimize vacancies and ensure a smooth transition for both parties.
2. Know What the Market Is Doing
You'll want to stay informed on the current state of the real estate market. Follow trends and be aware of the rental rates in your area.
By understanding the market conditions, you can set competitive rental rates and negotiate favorable terms during lease renewals. This will also increase your chances as a property management company to retain quality tenants.
3. Consider Your Tenants History
Rent collection is something to take seriously. Both parties should be satisfied. With that said, if you have a good tenant who pays their rent on time and takes care of the property, you may be willing to lower their rent.
4. Offer Incentives
Property managers can entice tenants to renew their leases. This can include things like a rent freeze, a reduced security deposit, or minor property upgrades.
Offering incentives can also help to reduce turnover rates which will save you time and effort in finding new renters.
5. Update Lease Agreements
A lease renewal is the perfect opportunity to update and improve the lease agreement. Seek legal advice to ensure your lease aligns with current regulations and includes any necessary amendments. Make sure the document reflects changes in rental rates, lease duration, and other terms agreed upon by both parties.
6. Be Prepared for Alternatives
Remember, lease renewals aren't guaranteed. Be prepared for alternative scenarios by having a plan in place.
Your property marketing strategy should:
- Attract new customers
- Schedule property inspections
- Plan for repairs
Note that uncomfortable situations do arise. Do your best to navigate them with ease and always have a plan of attack. While you can be empathetic with someone's situation, the bottom line is having a tenant you can trust.
Let Us Handle Your Lease Renewals
Navigating lease renewals as a property owner can be a smooth and successful process when armed with the right knowledge. Follow the tips provided in our article to a tee and you won't go wrong.
The good news is that you're already right where you need to be. Our property management tease will make your lease renewals and rent collection a breeze. Don't hesitate to contact Wolfnest for all your rental property needs.