Topic: Call to remind Residents for Lease Renewal

Hello!

Can someone help me, when I call a resident. I would like to inform them that their Lease is about to expire. What is the best way to tell them? I am sorry I am brand new in this industry. I love to gain knowledge.

There are different ways to advise renters that a lease is about to expire. Many opt to send a certified letter to avoid confronting the subject altogether. I'm sure taking the snail mail route depends on the size of the facility and number of tenants. Some leases automatically renew which is another reason some managers choose to send a letter. That way if the letter is ignored, they can assume that the tenant is signing up for another year.

All in all, if you are required to make a call then do just that. Don't be afraid that you're stepping on toes, but rather consider that you're doing them a favor! Remember, the building you manage is their home! Don't assume that they want to jump out of it the moment they hear that their lease is expiring. Grab the phone, call them up and say, "Hi ____! I'm calling to let you know that your lease expires on ____ (date) and that you can come by my office anytime to sign these lease for 2017. Please do so before _____ (date). Thanks!"

Again, don't be afraid to make the call (or send a letter). This is their home and you're helping them stay in it for another year! Confidence is key.

First of all, I think it is important to have a long-term resident communication plan. If a resident moves in, and then doesn't hear from you for 11 months, then you have lost that initial relationship that you built with them when they moved in. Some communities call each one of their residents every month to check on them. I don't know if you have to go to those lengths, but at the very least, I think setting up a schedule to call and check in on them a few months prior to renewal is a good idea to start that rapport building.

But before that, we have to actually establish when the renewal discussion should happen relative to the renewal date. I've had situations where the management company sent me a letter just a few days before my notice to vacate was due. That meant I had to digest the new rental rate and make a decision within two days on whether I wanted to renew. On the one hand, that might push the person to renew without really getting into the buying process and shopping other communities, but it also has the potential to really upset the renter, who might feel that management is being unfair by giving them no time to make a decision.

Regardless, if you had a notice to vacate (NTV) of 60 days, then maybe you want to have the renewal conversation 75 days prior to the end of the lease. And then, like I mentioned before, you might want to have calls to the resident to "check in" 105 and 135 days prior to the end of the lease to establish rapport, find out if they have any lingering issues with their apartment, and find out if they are using the amenities, which will help in the discussion to renew. That way, when you get to the renewal discussion (75 days prior), they don't have any problems you haven't already addressed.

And as for communication medium, I highly recommend a phone call first, and then followed by a letter. My theory is that if we can't take the time to call someone on probably their largest cash outlay of the year, then we don't deserve their business.

Property management is all about building relationships - with your residents, vendors and team and Prospects/community. A letter is one small component of building. It is, in my opinion, not the best way to introduce yourself to a resident. What I mean by this is, as a Manager, I think it is important that you be seen in the community - walking the property, passing out newsletters or notes, picking up trash. You should be available on Saturdays sometimes, or stay past 5:00pm some, so your Residents know who you are. You should be emailing Residents, answering the phone, reaching out, resolving issues. If you can send out personal notes to residents, or even birthday cards or maybe an actual Happy Anniversary Card (I designed my own) for the renewal, all of that lends a personal touch and helps build the relationship with Residents. Then, when Residents see the Office number pop up in their Caller ID they aren't afraid to answer or return the call.

When you call about the renewal, start with an introduction of yourself and let them know you value their living in the community and want that relationship to continue. Ask them if things are going well with their apartment home and if you offer any renewal incentive or small gift, please let them know that. You want to assist them in making an informed decision, and then let them know you'll be sending out their Renewal Letter or Notice that day or next. Usually it is a brief conversation without a lot of talk about the increase.

First and foremost, you will be more successful with your endeavor if you change your word 'expire' to renew. think of the seed you are planting; "it is time for you to renew your lease" versus it is time for you to expire...they may think they are dying!
I have a great renewal letter/notice that I am happy to share. email me at This email address is being protected from spambots. You need JavaScript enabled to view it.

Depending on your property's situation, I can offer this advice, if it applies:

1. I never call anyone to remind them their lease is expiring due to the inability to document the conversation. I've heard too many "that's not what you told me." responses.

2. All renewal reminders were sent a letter and email on the same day documenting the date and time it was sent (our leases required a minimum 75-day notice to increase rent).

3. Due to laws on notification, we always documented rent increases and lease renewals in writing so the tenant cannot claim "they never got it." to prevent loss of income for the property. They are considered to have received notice under certain conditions and we made sure we complied with that law.

A follow-up phone call 3 days later would be appropriate to ask for an appointment for them to come to the office to sign their paperwork, but I would not negotiate any terms on the phone. Phone conversations should be documented in their file, as well. A witness to the conversation would be great. Or, have a script you use and put a copy in their file.

I know I'm guilty of being so busy and preoccupied with other things, that I might forget most of a phone conversation like that. But, having something in writing or unread on my email sticks a lot longer.

Generally there are cute and clever letters to be sent out require at least 60; 90 days (better) notice and up to 120 days notice to give the residents time to think and/or prepare to renew or move.
Talk with your leasing staff as they are generally the ones that prepare these letters upon your approval with any rent increases you may or may have ordered.

Congratulate them on being approved for lease renewal. Explain that the property is lease-only and month-to-month tenants are not allowed. Should they decided to move, remind them of the statutory notice necessary if there is one. Offer to come to their door with the lease papers on appointment. Just be a nice person and treat them as you would want to be treated. It costs nothing to be nice.