If you're a landlord in Reno, NV, you have a golden opportunity to earn a passive income averaging around $53,000 per year.
But to ensure this money comes into your bank account each month without interruption, you need to master the art of lease renewals. This can keep great tenants in your property, which means you won't need to market your rental home and look for new renters.
Here are four of the best lease extension tips for landlords.
1. Discuss Lease Renewals Early
Tenants will be aware of when their lease expires, and this is when they will start looking at other rental homes in the area. If you leave it too long to offer a new tenant lease agreement, they could set their heart on moving into another property.
Therefore, it's best to discuss lease renewals two to three months before the end of the current agreement. This will reassure your renters that you want them to stay and encourage them to sign a contract as soon as possible.
2. Foster Two-Way Communication
While you want to protect your investment and increase income, it's vital to understand what factors influence your tenants. For example, they might advise that there are maintenance issues that need to be addressed. Or they might feel that some minor home improvements could make a positive difference.
You can then determine which requests are reasonable and decide if you will make these changes. Even if you decline to make adjustments, listening to your tenants will show them you are a reasonable landlord and make it more likely they'll renew their lease.
3. Highlight the Positives of a Lease Renewal
As a successful real estate investor, the obvious benefit of lease renewals is that you'll continue to generate income without having to look for new tenants. But there are also significant advantages for renters.
You can point out that signing a fresh contract means they'll have stability and can continue to integrate into the local community. Your tenants will also know precisely how much rent is due each month for the length of the agreement and they can use an online portal so they can easily make payments.
This security and predictability can be a crucial factor when tenants are considering renewing rental contracts.
4. Be Flexible Where Possible
When approaching lease renewal time, tenants may make requests that you can't accommodate. However, there may be times when you can be flexible which could help a renter decide to sign a contract. This could include offering a shorter lease term or agreeing to change the monthly payment date.
These incentives could be the difference between a current tenant agreeing to stay, or you having to market your property to new prospective renters.
Contact the Martin Team at Dickson Realty
When tenants sign lease renewals, it can save you time, money, and stress. By making the process as simple and fair as possible, you can encourage current renters to stay in your property for longer durations, benefitting both parties.
The Martin Team at Dickson Realty is well-versed in the most successful lease negotiation strategies for residential Reno, NV landlords. We communicate with tenants, negotiate rent increases, and maximize occupancy rates.
Contact our friendly team today to discuss how we can manage your rental investment.
