Consider These 3 Lease Renewal Tips for Properties Las Vegas

[Ron Nir]

Encouraging lease renewals is an essential aspect of your income property’s success. Fortunately, there are a few things you can do to encourage lease renewals, increasing the likelihood of securing long-term tenancy.

Keep an Open and Honest Dialogue

Some tenants will naturally be on the fence about lease renewals, whether it’s because of price or other factors. If you want to offer your unit at a fair market price – and that includes increasing rent to reflect demand – then you definitely should tread lightly. On one hand, your profitability is at stake, but, on the other, you want to retain your responsible tenants. If you do choose to increase rent at the end of the lease term, make sure it is reasonable (no more than 3-5%) and write it in a warmly worded letter.

Avoid Auto Renewals

In some cases, an auto-renewal kicks in and makes a lease month to month at the end of a rental term. This is not necessarily a bad thing, especially if you are not planning on changing your prices. However, it gives the tenant full control over when they want to vacate the premises, which could lead to scrambling to fill a vacancy on the slowest times of the year, such as November and December. Rather than making your lease at an auto-renewal, make a point to contact each tenant toward the end of each lease term to troubleshoot issues, renegotiate terms, and have them sign a brand new agreement outlining any changes in terms.

Work With a Property Manager

Renegotiating lease terms and working with tenants requires an experienced hand. If you are already juggling your job, home, and other responsibilities, the prospect of meeting with tenants and renegotiating leases can be daunting. Property managers are ideal for taking over all aspects of renting out your investment properties, including tenant screening and renewals. 

But before you hire a property manager, do your due diligence look for a PM that can guarantee your income through an innovative rent guarantee plan and safeguard your Net Operating Profit. They should be tech-driven and transparent with best practices.