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How to Rent Apartments without Selling the Specials

Proven methods of increasing occupancy without selling specials.

Increase Tenant Renewal Rates, Decrease Administrative Costs

Increase Tenant Renewal Rates, Decrease Administrative Costs

Owning a property is never easy.  Above and beyond providing for your tenants, you also have regulatory burdens to meet, taxes to pay, and marketing and promotion to engage in – at least if you want to keep your property relatively full.  

This can all be accomplished through a variety of tried and tested techniques, each of which is selected based on suitability of use for your property and location.  One example of a technique that you can employ is helping to convert your leasing process to utilize automatic lease renewals.

By implementing an automatic renewal policy, property owners can end up dramatically increasing retention and renewal rates while lowering their administrative burden at the same time.   Let’s take a look at three important things to keep in mind regarding this particular tactic:

  • Higher Lease Renewal Rate – As mentioned, providing for automatic renewal will definitely help to keep your tenants in place and raise your renewal rates.  If you design the policy in such a way that they must provide you notice before the expiration of their lease if they do not intend on renewing, you will always have plenty of warning each and every time you need to begin seeking out a new tenant.
  • Lowered Administrative Burden – Another benefit of implementing automatic lease renewals is that you will decrease your administrative costs and burdens as well.  Less letters and notices need to be drafted and mailed out, fewer clients need to be spoken with to determine their plans, and less hours worked to take care of all the paperwork involved with everything as well.  This translates to significant cost savings over time.
  • Don’t Forget to Provide Service – Some property owners believe their tenants won’t like automatic renewals.  While that argument initially has some merit, consider; unhappy tenants are going to be quite literally counting the days until they can leave.  They’ll give you notice well in advance of any requirements you may implement.  Happy tenants tend to stay where they are; provide service, keep them happy, and you should have very few problems with the new policy.

Automatic lease renewals are just one of the many different tactics and techniques that you can choose to employ in order to help you maximize your profits.  You should seek the advice of an expert if you find yourself questioning how to increase and maintain your occupancy.  

Here are two sample automatic lease renewal clauses, just to give you a basic idea of what you would be dealing with:

  1. Shorter, simpler clause – RENTAL AGREEMENT TERM. The initial term of the Rental Agreements hall commence on the day of _________, 20__ and end the_____ day of ,_________ . This lease will automatically renew for the same term that just expired unless written notice of termination is given by either party at least 30 days before the end of the above lease term or renewal period or unless another lease is signed by both parties.
  2. A slightly longer clause suitable for commercial leases – OPTION TO AUTOMATICALLY RENEW TERM OF LEASE. This lease automatically renews itself for (up to five) twelve (12) months periods on each anniversary date, (the monthly date the lease began), unless either party (LANDLORD OR TENANT) gives the other party 60 days written notice (prior to end of any lease ending date) of their desire not to renew for another 12 months. Notice from either party must be made by certified mail. Verbal notice is insufficient under any circumstances. If the TENANT chooses not to renew this lease as described, the TENANT must surrender possession and move out of the premises at the end of the original term of the lease. While in possession of the premise the TENANT must be under the terms of this lease agreement or extension renewal of this lease agreement, as month to month tenancies will not be permitted by the LANDLORD.

These are meant to provide you examples of lease renewal clauses only, and should not be taken as legal advice.  Make sure to consult with your attorney prior to making any changes to your lease agreements to ensure you remain compliant with all applicable laws.

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Setting up automatic notifications in your property's email / text / portal / app so residents are gently reminded, say, 90 days ahead of the end of the lease can help, too. Particularly if done in survey form so residents can indicate their intentions (which may change, of course) so managers can plan accordingly.

  MobileDoorman

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