The Wall Street Journal named Canton and surrounding areas the second hottest housing market in the US. As a landlord in the market, you have a prime opportunity for a successful real estate investment. One basic principle of rental ownership is to keep a great tenant in your rental property.
Lease renewals are essential for the success of your rental property. These tips will help you secure an early lease renewal.
Start Early
Start the property lease renewal process early to secure a signature sooner. Good landlords and property managers don't wait until 30 days before the lease expires to renew. Instead, they reach out 60 or even 90 days before the lease expires.
If the tenant has concerns or hesitations, you have plenty of time to address them.
Communicate With Your Tenant
You should already be in open communication with your tenant. However, if you haven't communicated with your tenant in a while, now is the time to start. Reach out to your tenant in writing about the lease agreement renewal.
Communicating in writing gives you a paper trail to refer to later. It also helps you track communications to follow up with the tenant. Even good tenants can get caught up in life and forget to send a response.
If your tenant asks questions, hesitates, or wants to negotiate, promptly respond to their inquiries. Be courteous and fair when formulating your responses.
Consider Rent Increases Carefully
Unlike other states, Ohio does not have statutes in place for rent stabilization or control. However, just because you are not limited does not mean you can increase the rent without care. Aggressively increasing the rent for your tenant's lease renewal can cause the tenant not to renew.
If you have a great tenant, a less aggressive increase is worth keeping a high-quality tenant. In contrast, increasing the rent to encourage a tenant to leave can have consequences. The Ohio Fair Housing Act prevents landlords from targeting tenants in a protected class by raising the rent to get them to move out.
Offer Renewal Incentives
One of the most helpful lease renewal tips is to offer your tenant an incentive to renew. You could offer a month of free rent or a discount for several months. Perhaps you can sweeten the deal by offering additional amenities or included utilities.
Place a deadline on the incentive to encourage the tenant to sign the lease early. For example, they must sign the lease renewal by a specific date. That way, you secure the lease renewal plenty of time before the original lease expires.
Secure Tenant Lease Renewals Early
Securing lease renewals early can give you a sense of security as a landlord. To ensure your tenants stay in your rental, communicate with them early and respond promptly.
Weigh the pros and cons of rent increases carefully. If your tenant is hesitant, consider offering an incentive to encourage them to renew.
At Stewardship Management & Realty, our team helps landlords in Massillon, OH, with their rental management. We minimize expenses while maximizing profits while providing quality customer service.
Increase rental profits and reduce risk with our decades of experience in the local rental market.
