Refine Your Lease Renewal Process
A lease renewal procedure should start four months before leases expire. By taking the preliminary steps thus far ahead, you assure a seamless procedure without glitches or last-minute concerns when the lease renewal deadline nears.
Renewal of leases is an important aspect of managing a property, and it requires expertise and attention to maintain occupancy and income year after year. The lack of automation and limited technology can make renewal a time-consuming and difficult process for your staff, resulting in a negative client experience.
Regardless of market conditions, it is equally imperative to have the correct strategies and tools in place to maintain a strong renewal rate. Lease renewals are at the core of how much property management needs to be done with skill and professionalism to achieve the desired outcome. Here are several ways to make your lease process more beneficial for both you and your tenants:
Provide Flexible Lease Terms
The idea of signing a 12-month lease may seem daunting to some tenants. One method to meet their demands is to offer variable lease terms, such as six or four months, or to allow them to renew on a month-to-month basis. Instead of losing a potential renewal during times of low demand, you can let them renew as usual after a few months.
Alternatively, long-term fixed-rate leases of 24 months may entice some residents. Offering a variety of options will increase the likelihood that your tenants will renew their lease, providing peace of mind for both of you.
Rent and term options are built into our software, making it easy to manage flexible leases in the future. Moreover, our software can reduce the amount of back and forth discussion by letting users choose alternatives in advance and selecting the deal that best suits them.
Consider Flat Renewals
While raising rents for every renewal offer may seem like a good idea, this is not always the best move depending on market conditions. If tenants leave because they cannot afford the new rent, you’ll have to deal with a vacancy and turn fee. It may be advantageous to defer raising rent temporarily and offer a flat renewal when the market decreases to show your tenants that you care.
The fear of disrupting your lease expiry management plan or exposing your company to possible hazards by granting lease terms that are different from what you normally offer is understandable. However, creative lease options that provide stability in the short-term while reducing risk in the long term can help deter tenant turnover.
Make Renewals Accessible to the Tenant
Today, tenants prefer to handle most tasks online, including renewing their leases and paying rent. Through the use of our mobile technology, your residents will be able to sign their lease renewals wherever they are. Besides being more convenient for everyone, this simplifies the renewal process and improves resident satisfaction.
Make Contact with Your Tenants
A service-oriented sector like property management means your staff forms relationships with residents and is often in the position to provide the assistance they need. It is more likely that tenants who feel well taken care of and valued will renew their leases and stay for the long haul.
One of the best ways to assess residents’ status is to meet with them and keep in touch with them, e.g., via text, email, or phone, and follow up with them throughout the year. In the case of a renewal, contact them as soon as possible to understand what they require and how you can ease their concerns. Tenants will appreciate your efforts not only because of their relationship with your staff but also because they realize their strategies benefit you.
Our software allows you to digitally notify tenants of their upcoming renewals and rent increases, saving time and resources. Additionally, you can set default letter templates for each property and automatically add renewal options and renter information. There is an option for setting a deadline for the resident in their online portal, which will send a reminder email a few days before renewal.
Make Data Work for You
Based on the performance of your properties, you can develop a strategic renewal plan. Consider integrating technology that gathers and analyzes all your data to free up staff and simplify the evaluation of your renewal performance.
For instance, a renewal summary report may simplify the process by providing a single, filterable view of all renewal offers extended and resident selection throughout time, which allows you to gain the information you need to make better strategic decisions.
Keeping your renewals on a consistent course requires flexibility, efficiency, and forethought. By implementing UnitConnect technology, you can save time, increase monitoring capabilities, and improve your tenants and management experience.