The Renewal Conundrum
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The Renewal Conundrum (by Duplexer [IL]) Feb 8, 2023 3:53 PM
       The Renewal Conundrum (by Oreo [WI]) Feb 8, 2023 4:05 PM
       The Renewal Conundrum (by plenty [MO]) Feb 8, 2023 4:20 PM
       The Renewal Conundrum (by Duplexer [IL]) Feb 8, 2023 4:31 PM
       The Renewal Conundrum (by Oreo [WI]) Feb 8, 2023 5:31 PM
       The Renewal Conundrum (by Still Learning [NH]) Feb 8, 2023 5:33 PM
       The Renewal Conundrum (by 6x6 [TN]) Feb 8, 2023 6:23 PM
       The Renewal Conundrum (by MikeA [TX]) Feb 8, 2023 6:25 PM
       The Renewal Conundrum (by Mike45 [NV]) Feb 8, 2023 6:44 PM
       The Renewal Conundrum (by ned [AL]) Feb 8, 2023 8:07 PM
       The Renewal Conundrum (by Vee [OH]) Feb 8, 2023 9:06 PM
       The Renewal Conundrum (by small potatoes [NY]) Feb 8, 2023 9:17 PM
       The Renewal Conundrum (by Jason [VA]) Feb 9, 2023 6:32 PM
       The Renewal Conundrum (by ned [AL]) Feb 9, 2023 9:21 PM
       The Renewal Conundrum (by zero [IN]) Feb 10, 2023 7:50 AM
       The Renewal Conundrum (by Busy [WI]) Feb 10, 2023 9:20 AM
       The Renewal Conundrum (by zero [IN]) Feb 10, 2023 12:32 PM
       The Renewal Conundrum (by Ned [AL]) Feb 10, 2023 8:30 PM
       The Renewal Conundrum (by Jeffrey [VA]) Feb 11, 2023 9:13 AM
       The Renewal Conundrum (by Warren631 [PA]) Feb 15, 2023 11:21 AM
       The Renewal Conundrum (by Warren631 [PA]) Feb 15, 2023 11:21 AM
       The Renewal Conundrum (by Jim in O C [CA]) Feb 15, 2023 12:04 PM
       The Renewal Conundrum (by Bruce [MI]) Feb 15, 2023 12:49 PM
       The Renewal Conundrum (by Warren631 [PA]) Feb 15, 2023 5:03 PM
       The Renewal Conundrum (by Robert [OH]) Feb 15, 2023 5:43 PM
       The Renewal Conundrum (by Robert [OH]) Feb 15, 2023 5:45 PM
       The Renewal Conundrum (by Warren631 [PA]) Feb 15, 2023 6:00 PM
       The Renewal Conundrum (by GingerLou [GA]) Feb 20, 2023 8:02 AM
       The Renewal Conundrum (by BRAD 20,000 [IN]) Feb 26, 2023 1:23 AM
       The Renewal Conundrum (by Don [PA]) Feb 28, 2023 2:00 PM


The Renewal Conundrum (by Duplexer [IL]) Posted on: Feb 8, 2023 3:53 PM
Message:

So I have a young 20s tenant renting who has turned out to be pretty much ideal. She pays her rent on time, doesn't complain a lot, bother neighbors or damage anything... and thats about as good as it gets. In fact its pretty much a find imo.

The problem is young people never stay. I expected her to do a year and then move in with boyfriend, back with family, hanker for a new place whatever.

But her lease is up March 31st.

So my question is. If you have a good renter and want them to stay and renew. When should you offer then a lease renewal, and how is it handled?

My first thought was to offer a renewal right after she pays her last month's rent, aka March 1st. But this may lead to the tenant looking at new places for a whole month. Once they get it into their head they want new, they're gone.

Thoughts?

--162.200.xxx.xx




The Renewal Conundrum (by Oreo [WI]) Posted on: Feb 8, 2023 4:05 PM
Message:

First of all, congrats for getting a good one you want to keep! I remember some of the trouble you were having.

How much notice is she required to give you per her lease? That's generally the amount of time you should give her to renew or give notice.

--75.11.xx.xx




The Renewal Conundrum (by plenty [MO]) Posted on: Feb 8, 2023 4:20 PM
Message:

Consider that she's green, she may assume that when the lease agreement ends she HAS to move. So I would verbally be teaching her how she can stay. The end is not always the end. Just a new beginning. For example: Suzie as long as you are a renter, I'd like you to rent from me. -or- if you'd like to continue our rental agreement I'd like to offer you another two year lease at $xx and with a gift of your choice: ceiling fan, new XinsertX, whatever. Grass cutting for two months. Or trash service. Whatever . --172.56.xx.xxx




The Renewal Conundrum (by Duplexer [IL]) Posted on: Feb 8, 2023 4:31 PM
Message:

I'm thinking I better just give her the renewal offer the day she pays, Mar 1st.

However giving her 30 days to consider the offer is a LOOONG time for her to think about and look at exciting new apartments and to get that tenant roaming urge. That pretty much would guarantee she'd take off.

Just saying. Been there done this, lol.

--162.200.xxx.xx




The Renewal Conundrum (by Oreo [WI]) Posted on: Feb 8, 2023 5:31 PM
Message:

DUPLEXER: I think there is merit in PLENTY's idea. and you can still offer it when she makes her March 1 payment. --75.11.xx.xx




The Renewal Conundrum (by Still Learning [NH]) Posted on: Feb 8, 2023 5:33 PM
Message:

I reach out to tenants by the 25th and remind them their lease is ending the following month, offer them a new lease and ask them to let me know by the 1st. It gives them about a week to think. Most already know if they are staying or going. --23.242.xxx.xx




The Renewal Conundrum (by 6x6 [TN]) Posted on: Feb 8, 2023 6:23 PM
Message:

I like Plenty's answer --73.120.xx.xx




The Renewal Conundrum (by MikeA [TX]) Posted on: Feb 8, 2023 6:25 PM
Message:

My experience has been exactly the opposite. Tenants already know they are moving at least 60 days out. No one wants to stay where they are not appreciated. Letting them know you would like them to stay and with a small enticement 2 months out is a good thing and often you can get them to sign a new lease before they would be required to give the 30 day notice. --209.205.xxx.xx




The Renewal Conundrum (by Mike45 [NV]) Posted on: Feb 8, 2023 6:44 PM
Message:

"Consider that she's green, she may assume that when the lease agreement ends she HAS to move. "

I had this happen once. A great family moved out at the end of the lease, and told me that they thought they had to move because the lease was up.

Since then, I start to ask about the ts' intentions about 2 months before the lease end. I normally ask if they want to renew or go m-t-m, assuming that they are not vacating.

--76.4.xxx.xxx




The Renewal Conundrum (by ned [AL]) Posted on: Feb 8, 2023 8:07 PM
Message:

Personally, I'd let it roll month to month at same rate and let chips fall as they may. --70.92.xx.xx




The Renewal Conundrum (by Vee [OH]) Posted on: Feb 8, 2023 9:06 PM
Message:

I would ask about a lighting upgrade or something to crack the ice, look around while changing heater filter - how about a color change in %%% room? --76.190.xxx.xxx




The Renewal Conundrum (by small potatoes [NY]) Posted on: Feb 8, 2023 9:17 PM
Message:

I make contact longer than 60 days out so I can plan if the answer is no. By 45 days I want to advertise and start showing the unit. I chat them up by text or if I see them at their unit I'll ask, otherwise I send them a lease renewal letter stating what the new rent will be with instructions to return the letter signed or notify me by x date if it's a no. I know when it's a no because I don't hear from them a sthey are hedging their bets. I don't usually raise rent on the second year, so if you think she might move on you could say hey if you decide to stay your rent won't increase. I consider upgrades for longer tenants (along w/ rent increases). --67.240.xx.xx




The Renewal Conundrum (by Jason [VA]) Posted on: Feb 9, 2023 6:32 PM
Message:

I’ve found that without the pressure to “lock themselves in for a full year” they tend to stay longer. They know they have time to shop around at their convenience so there’s no rush. They just never really get around to shopping around. I have one m2m going on year 12 now. --71.63.xx.xx




The Renewal Conundrum (by ned [AL]) Posted on: Feb 9, 2023 9:21 PM
Message:

What Jason said.

Human nature is to do what we've been doing.

If their rent is a good value, there is reasonable chance they ain't goin' nowhere. --70.92.xx.xx




The Renewal Conundrum (by zero [IN]) Posted on: Feb 10, 2023 7:50 AM
Message:

My second longest staying tenant, besides the mother-in-law, has been with us 18 years.

Sold his house to move to a new job. Said he would stay a year to help me out. I have been on MTM leases a long time. --107.147.xx.xxx




The Renewal Conundrum (by Busy [WI]) Posted on: Feb 10, 2023 9:20 AM
Message:

Another vote for MTM. I don't mention it in any advertising; instead, I tell them when I hand out the applications. I say that I want long-term tenants, but I feel month to month keeps us both on our best behavior.

Disclaimer: small-time landlord, this is just what works ( very well) for me. YMMV.

Oh, and I was told by at least two tenants so far that had they been able to go MTM, rather than a one year lease, they would have stayed where they were. They didn't want to be locked in. First one that told me this stayed three years, then moved out of state, second person who told me this has been there almost seven years. Given how much I don't like screening tenants, I prefer less turnover. --70.92.xxx.xxx




The Renewal Conundrum (by zero [IN]) Posted on: Feb 10, 2023 12:32 PM
Message:

I just tell the prospective tenants that I don't know what I will be doing in a year so I don't expect them to.

Most like having the perceived freedom. I like not worrying about someone not wanting to stay being tied to a lease. I keep hearing all the good with the ETF on leases, but for this small time guy I prefer having the opportunity to just say goodbye to them.

I can just say non-renewal and save the yelling during court when they don't agree too. --107.147.xx.xxx




The Renewal Conundrum (by Ned [AL]) Posted on: Feb 10, 2023 8:30 PM
Message:

I've got some year leases. But have become more fan of MTM in last several years. I get next to no blowback. I do sometimes tell em- "you're not bound to us for any length of time." --70.92.xx.xx




The Renewal Conundrum (by Jeffrey [VA]) Posted on: Feb 11, 2023 9:13 AM
Message:

Duplexer, I like Plenty's answer as well.

I don't know if you ever heard me teach on this, but let me share with you a concept that has worked extremely well for me over the years and saved me thousands in turnover costs. Consider utilizing it for all your future residents moving forward.

Getting residents to stay longer than one year starts not 30 days out, not even 60 days out, it starts with the MINDSET you CREATE, going all the way back to the time of application and at the lease signing.

On the application you ask: Would you like to receive a gift every year on your anniversary date? (By the way never use the term "renewal" with your residents, use the term "anniversary" date.

On the lease agreement, the first line reads: Welcome as one of our new 3-Star Residents, we look forward to serving you for the next 3 years.

Duplexer, its all about creating and reinforcing this mindset throughout the term, including asking them to let you know which anniversary gift they want to select from a couple of options you offer. And you ask this "six" months before their anniversary date.

This is just one of many ways you can rid yourself of the renewal conundrum and add to your peace of mind and save thousands on turnover costs on just one rental.

If at all possible, I hope you will be able to join me in Columbus Ohio at the upcoming Convention in June where I will be sharing a lot more ways on how you can CREATE your future success:) --172.59.xxx.xxx




The Renewal Conundrum (by Warren631 [PA]) Posted on: Feb 15, 2023 11:21 AM
Message:

I always have automatic renewal in the lease with a 60-day notice between tenant and landlord for year to year or 30-day notice for month to month. Require a written certified notice is better to help them not bother. Texting is too easy for them. I find tenants can't be bothered to cancel the lease and they are automatically renewed for another period. --24.126.x.xx




The Renewal Conundrum (by Warren631 [PA]) Posted on: Feb 15, 2023 11:21 AM
Message:

I always have automatic renewal in the lease with a 60-day notice between tenant and landlord for year to year or 30-day notice for month to month. Require a written certified notice is better to help them not bother. Texting is too easy for them. I find tenants can't be bothered to cancel the lease and they are automatically renewed for another period. --24.126.x.xx




The Renewal Conundrum (by Jim in O C [CA]) Posted on: Feb 15, 2023 12:04 PM
Message:

My lease agreement rolls over to a month to month. I make sure the tenant understands this. In my annual increase letter if they are a valued my increase is minimal and reasonable enough that they don’t want the hassle and pain of moving.

During the year I make any repairs as fast as possible. --99.23.xxx.x




The Renewal Conundrum (by Bruce [MI]) Posted on: Feb 15, 2023 12:49 PM
Message:

There is a regional consideration in here that no one has mentioned, so I will. I understand the human tendency (especially with tenants) of not initiating a change and just staying on. That would make month-to-month attractive for me as a landlord (with good tenants because I am not "triggering" them to move and with bad or so-so tenants because I can more easily get them to move by raising rents).

But in a northern state, no one wants to move in the winter. A good tenant is not likely to initiate a move in the winter, but if one does, it is much worse for me than it would be in the summer. When a house is empty in the winter, I have to pay high utilities even with the thermostat set down low. I have to check on the house much more frequently, because if the heating quits, it will cost multiple tens of thousands of dollars to repair damages (ask me how I know).

My practice is to ALWAYS raise the rent each year. Train the tenants to expect a rent increase; otherwise I will end up losing hundreds if not thousands of dollars a year by my rent falling behind market rent. For good tenants, I offer them a new rent that has gone up less than the average. I point this out when I make the "new rent offer" and compliment them on being a good tenant so that I could offer them a smaller increase than normal. --18.118.xxx.xxx




The Renewal Conundrum (by Warren631 [PA]) Posted on: Feb 15, 2023 5:03 PM
Message:

Send out the rent increase notice EXACTLY 30 days for m to m or 60 days y to y so tenant does not have 60 or 30 days to send out a cancel notice in time as a reaction to the raise notice. --24.126.x.xxx




The Renewal Conundrum (by Robert [OH]) Posted on: Feb 15, 2023 5:43 PM
Message:

Our company has been managing residential rentals for almost 17 years. We have over 400 doors. Very few of our tenants leave unless they are relocating. Our success stems from the fact that we treat our tenants with respect and expect them to enjoy their home. No offers resembling bribes, just really decent homes. We have tenants recommend us to their friends and family because of how well we treat them. Treat people well and they will stick with you, especially when customer service has declined so much in other businesses. A smile and a kind word keeps them coming back. --99.63.xxx.xx




The Renewal Conundrum (by Robert [OH]) Posted on: Feb 15, 2023 5:45 PM
Message:

Our company has been managing residential rentals for almost 17 years. We have over 400 doors under management. Very few of our tenants leave unless they are relocating. Our success stems from the fact that we treat our tenants with respect and expect them to enjoy their home. No offers resembling bribes, just really decent homes. We have tenants recommend us to their friends and family because of how well we treat them. Treat people well and they will stick with you, especially when customer service has declined so much in other businesses. A smile and a kind word keeps them coming back. --99.63.xxx.xx




The Renewal Conundrum (by Warren631 [PA]) Posted on: Feb 15, 2023 6:00 PM
Message:

I agree with robert --24.126.x.xxx




The Renewal Conundrum (by GingerLou [GA]) Posted on: Feb 20, 2023 8:02 AM
Message:

I can relate to what several of you have already said. I have a Self-Renewing Lease. I don't want to draw the tenant's attention to any renewal time. I have started going up a little on rent each year, but if I have signed a Lease with someone that hasn't completed a full year of the Lease, I just don't go up on their rent until the following year. I send out letters each August or Sept (more than 30 days prior to increase), informing them that the new rent goes into effect October 1 of that year. In my letter I don't mention their current rent, I just say: "Your new rent amount is $_______/mo." I give them various legit reasons for the rent increase, having to do with increases in my company's overhead, etc. As far as I'm concerned, after the first full year, my Leases go month-to-month, but I don't point that out directly to the tenant. I don't penalize tenants who decide to move out after that first year as long as they give me proper notice. The Leases state that a 60-Day Written Notice must be given prior to vacating. I have very few vacancies, and with 26 properties, I don't want to have to keep up with nor sit down with tenants each year and sign a new Lease. Our rental market here near Atlanta is HOT; my rents are always below market, and I maintain all rentals very well and treat my tenants with the utmost respect. Some of my units are way below market at this point (considering the skyrocketing rents in the last few years), but I would never impose a giant increase in rent on any of my existing tenants (unless I WANTED them to vacate). I go up only in small increments and make my biggest rental increases in-between tenants. I have never offered an incentive for tenants to remain in properties. And if I were to, I would not present it as an incentive for them to continue renting from me. I would rather present is as "an upgrade I got approval for." Making my Leases self-renewing is one of the best decisions I've made in the over 30 years I have been a LL. --99.110.xxx.xx




The Renewal Conundrum (by BRAD 20,000 [IN]) Posted on: Feb 26, 2023 1:23 AM
Message:

Duplexer,

Do not operate out of fear. Don't be shy. Step up an MANAGE.

Turnover is the enemy of LLing - so work to prevent it.

Jeffrey's anniversary gift technique is GOLDEN.

Plenty is right. She might ASSUME. TEACH her she does not have to leave.

Statistics show the new resident DECIDES if they plan to renew on MOVE IN DAY. How did it go? Were they happy they chose this place?

I have never understood why LLs think it's important to lock someone in for 12 months but then give up that control in month 13 with MTM.

No other contract moves you to MTM.

OUR people stay longer to fulfill the next year- turnover delayed while rent continues.

OR they pay me THOUSAND$$ in Early Lease Termination Fee for the privilege to break the lease.

My lease is clear: lease automatically renews on the anniversary date each year if the res does not give 2 calendar months notice in advance.

BRAD

--73.103.xxx.xxx




The Renewal Conundrum (by Don [PA]) Posted on: Feb 28, 2023 2:00 PM
Message:

My leases are for a year and then they go month to month automatically. Inflation is high and rents are rising. Before the end of the current lease, tell her that if she renews for a year you will offer her the same rent. With the way inflation is going, that is like a discount.

Also, keep in mind that many landlords never do anything but month to month. Why? Well, a long lease really only binds the landlord. Most tenants are judgement proof and when they want to move out or have to, they will do so regardless of a lease. --73.194.xxx.xxx





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