Incentives to get tenants to renew lease. Oldie but newbie

[Mark Langdon]

I have been on BP for 4 years (oldie) but not actively. Time to get back in the game (renewed newbie) and use this great source and expand my real estate portfolio.

I have a lease expiring in July at $ 3200/month for a SFH in New Jersey ( nice high end neighborhood) and would love to keep them and thinking of when and what I should offer them as a nice incentive. They have been perfect tenants (couple and 2 young children) keeping the place spotless and they never call (home was totally renovated a few years ago from a foreclosure). I have 1 1/2 months deposit.

The rental market seems a little tight so it may not be too bad if they don't renew but much easier of course if they renew. I always am looking to do longer than 1 year leases. I wasn't thinking of raising the rent this time but may if the market stays tight.

Some options I was thinking:

1) Give back $ 400 from their security deposit now as a nice gesture and another $ 400 if they renew. I feel 1 month security $ 3200 would cover it as they are the perfect tenants to date.

2) some sort of 1 time gift card/wine basket/local store gift

3) Offer no rent increase if they lock in and renew for 2 years

Always thinking of a Win-Win situation so leaning towards Option #1 as this costs me no money but gives them up to $ 800 that they didn't have.

What do you all use as an incentive to keep good tenants ? Thanks and love BP !

[Account Closed]

Mark,

As much as you want to come up with a win-win solution, I believe you are over-thinking this. High-end tenants will move when they're ready regardless of any incentives or nice gestures. They will not sign a 2 year lease if they intend to move within the next few months. However, they appreciate a nice place. You do what you have to do, and the tenants will do what they have to do. That's the catch about renting to high-end tenants.