Real Estate Investor · Member since 2009 · 30 posts · 0 votes
Do you notify your tenant a few months before their rental contract is about to expire? And ask them if they want to renew their contract/and/or get feedback about how they liked your property? If so, how has your experience been with this? Has it helped?...As I am thinking to start this.
Can you also please share with me a sample of your letter if you do this?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Its just a simple letter with three choices and a couple of reminders. I offer them to sign a new lease, go to month to month, or move out. I remind them they need to notify me 30 days before they move out, that they need to be out by the specified date or else they will owe for another month, and that if they give notice they're moving out I'll start showing the property. I also remind them the security deposit is not the last month's rent and I need to receive the last month's rent on the scheduled day as usual.
SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
16y
Originally posted by Claudia Schmidt:
Do you notify your tenant a few months before their rental contract is about to expire? And ask them if they want to renew their contract/and/or get feedback about how they liked your property? If so, how has your experience been with this? Has it helped? Yes, I usually contact the tenant and ask if they plan on renewing the lease. I usually tell them I'll keep the rent low if they renew for another year, otherwise I'll have to increase it by $xx.xx if we go month-2-month. They almost always sign on for another year unless they plan on moving sooner.
Can you also please share with me a sample of your letter if you do this?I haven't used a letter for this, yet. I've always asked over the phone.
Real Estate Investor · MD · Member since 2010 · 124 posts · 84 votes
16y
I send a simple letter stating their lease is expiring on x date and circle below whether they plan to renew. I have one line below that says I want to renew my lease for 1 year ad another line that says I plan to move out by x date. And require they send it back within 30 days.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
To my sfrs, I do have the mgr try to contact them ahead of time by phone. On apts, I have a short note sent to them reminding them of the options they have. Rich
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Its just a simple letter with three choices and a couple of reminders. I offer them to sign a new lease, go to month to month, or move out. I remind them they need to notify me 30 days before they move out, that they need to be out by the specified date or else they will owe for another month, and that if they give notice they're moving out I'll start showing the property. I also remind them the security deposit is not the last month's rent and I need to receive the last month's rent on the scheduled day as usual.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Do this in writing as detailed in your existing lease, since this is when you would naturally perform a rent increase. I give them a letter and basically use what Mitch described; one low increase for longer-term renewal, and a larger increase for month-to-month renewal. I also put into that letter that I will be collecting increased security deposit amounts equal to rent increase amount (when and where local laws allow for this).
Specialist · MA · Member since 2009 · 858 posts · 306 votes
16y
I do something similar with a twist. If my tenants renew their lease, they are usually hit with a rental increase as well so in my letter my to them (LOL if I want to keep them) I write a letter thanking them for their business and letting them know their new rental amount and start date for that amount, then below I have check boxes that state "receive this gift with your renewal"
I usually give them something like $50 to Walmart $50 to the local grocery store or a $50 Amex card and it's great because they are getting a freebie and I've just gotten their signature acknowledging they are aware of the renewal of lease and price increase. They send me back their signature and the check box of the gift they want and it's a great way to ease into a "Hey you're getting a 3% increase next month if you plan to stay"
So for instance:
Dear Dick and Jane Smith
Thank you for your continued residency with us. On August 1 if you plan to renew, there is a 3% rent increase and your new monthly rent will be XXX. We would like to offer you a renewal gift below. Please check which gift you would like and sign the bottom of this form to receive your gift.
___$50 Walmart
___$50 Grocery Store
___$50 Amex card
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Originally posted by smitnlit:
I do something similar with a twist. If my tenants renew their lease, they are usually hit with a rental increase as well so in my letter my to them (LOL if I want to keep them) I write a letter thanking them for their business and letting them know their new rental amount and start date for that amount, then below I have check boxes that state "receive this gift with your renewal"
I usually give them something like $50 to Walmart $50 to the local grocery store or a $50 Amex card and it's great because they are getting a freebie and I've just gotten their signature acknowledging they are aware of the renewal of lease and price increase. They send me back their signature and the check box of the gift they want and it's a great way to ease into a "Hey you're getting a 3% increase next month if you plan to stay"
So for instance:
Dear Dick and Jane Smith
Thank you for your continued residency with us. On August 1 if you plan to renew, there is a 3% rent increase and your new monthly rent will be XXX. We would like to offer you a renewal gift below. Please check which gift you would like and sign the bottom of this form to receive your gift.
___$50 Walmart
___$50 Grocery Store
___$50 Amex card
___________________ _____________
Signature Date
Now I like that, that's good business! I have knocked off a little on the rent before, but that might keep their mind off the rent and accept 50 bucks instead of 100 bucks off the rent! Good thinking!
Specialist · MA · Member since 2009 · 858 posts · 306 votes
16y
Thanks. The first time I tried it the tenants were psyched and wrote to me they never had a landlord give them a renewal gift.
The beauty is I enclose a self addressed stamped envelope and the hard work is done. They have acknowledged the rent increase, acknowledged when it will start and even got a thank you for their good tenancy. They feel great.
I HATE discounting rent. I'd rather just give them bonuses. One year we did something along the lines of
Check here if you would like:
New ceiling fan added in living room
New security light on porch
Washing machine
The beauty about the above is I've increased the value of my property- I get to KEEP all those things - and made a tenant happy that they got something for staying.
;)
It's a good tactic...and trust me I can't stand being a landlord at the moment...LOL