Maintaining awareness of when your property lease expires is a key to repeated renewals by a tenant. Some landlords are afraid to contact or discuss the lease renewal in hopes the tenant will forget. But this is a poor concept. The tenant is going to do what is in their best interests, so addressing their future plans gives you a chance to have some input into their thinking. By establishing contact at least 90 days prior to expiration, you determine how they like living in the property and address any unresolved maintenance issues and what you are doing to satisfy them in a timely manner. Additionally, as much as you are curious about their plans, they want to know if the rent will increase and by the amount the landlord will require. It’s possible the next year can be determined by a mutual agreement that satisfies both parties concerns. Moving is a hassle, expensive and there is no guarantee that the next residence will be a better lifestyle for them.
Don’t be afraid to increase the rent – Educate your residents to expect small but incremental lease renewals. As a rental property owner, your bills go up annually. Build in a yearly rent increase just to stay even on your income. However, never be excessive in the amount of monthly increase. You never want to lose a good tenant over rent increases.
The market adjusts periodically to a landlord’s advantage. But remember that over time, a good tenant can save you a lot of money in turnover costs and vacancy expenses.
Whether you self-manage or use a property manager for your Myrtle Beach rental property portfolio, your goal is always the same — keeping great tenants for as long as possible is the name of this game.
The Real Living Home Realty Group team is here to serve as a property management resource to you along the Grand Strand of Myrtle Beach. If you are working through a lease renewal or have questions on any other property management topics, give our team a call. 843-232-0000.