From maintaining an open dialogue to listening to tenant feedback, these are crucial tenant retention strategies that can boost lease renewals for your rental property in Nashville, TN. Welcoming pets and implementing better leasing management techniques can also help.
It's crucial to follow those landlord tips for Nashville lease renewals, given the high costs associated with tenant turnovers. As the National Apartment Association points out, the typical cost of turns is $4,000 per unit.
In this guide, our team at Deselms Property Management will share lease renewal insights to help you keep your best tenants.
What Is a Lease Renewal?
A lease renewal involves creating a new rental contract. With this, you, the landlord or property owner, and the tenant have the ability, choice, and right to end the current lease with the original term or sign a new lease agreement.
How Do Lease Renewals Work?
First, you must send a written notice to the tenant reminding them that their lease is about to end. The written notification must provide details about:
- Your intent to renew the lease upon the tenant's agreement
- Any changes to the previous lease's terms and conditions
- A "due date" by which the tenant must provide their response (whether they want to stay or leave)
Next, the tenant reviews the renewal's terms. Give them a chance to negotiate or voice any concerns they may have.
Then, after negotiating and coming to an agreement, you and the tenant must sign the new contract.
How to Boost Lease Renewals in Nashville, TN?
Since turnovers can cost a lot of money and time, it's better to prioritize tenant retention than look for new residents. Here are some practical tips to help you get started.
Keep an Open Dialogue
Maintain communication and open lines throughout the lease period, even more so when a tenant's lease is about to expire. By checking in with your tenants regularly, you can foster a stronger relationship and make them more willing to stay and say yes to lease renewals.
Listen to Tenant Feedback
One of the best strategies for improving tenant satisfaction and increasing their likelihood of staying is listening to their feedback. When you know what your residents need and value, you can:
- Make necessary and reasonable adjustments to the new terms and conditions
- Invest in the right rental property upgrades to enhance livability, value, and attractiveness
- Determine preferred renewal incentives for tenants
- Address issues and show concern for your tenants
If you invest in property upgrades, emphasize them in your written offer for lease renewals. Your residents will appreciate you more, knowing that you listen to their feedback and that they'll continue living in a well-maintained space.
Drop No Pet Policies
Do you currently prohibit pets in your rental property? If so, it's time to rethink this.
One good reason is that most tenants nowadays are pet owners. According to Multifamily Dive, nearly six in ten renters report having a pet. Given this high rate of ownership, it's easy to see why many of them pass on properties with pet bans or restrictions.
Your current tenants may not have pets now, but it doesn't mean they wouldn't want one in the near future. Indeed, the American Apartment Owners Association says that half of renters surveyed who currently don't have pets plan to become pet owners within the following year.
If you continue to ban or restrict animal companions, your renters may no longer be willing to renew their lease if they decide that it's time for them to become "fur parents."
Implement Leasing Management Techniques
Leasing management is a set of operational processes and strategies designed to oversee lease agreements and rental properties. It can help:
- Create more effective lease agreements
- Maximize rental properties' return on investment (ROI)
- Maintain regulatory compliance
- Boost tenant satisfaction
The most straightforward ways to achieve the above goals are through the use of a robust lease management system and by partnering with a Nashville property management firm.
Frequently Asked Questions
Is a Landlord Obligated to Renew a Lease?
Landlords in Nashville generally don't have legal obligations to renew a lease. An exception is if they've previously and explicitly noted this in the written and signed contract.
If you choose not to renew a fixed-term lease (e.g., a one-year lease), you should still notify the tenant in advance. Inform them at least 30 days before the lease expires, as this can give them enough time to look for a new place.
Likewise, your tenants should communicate their intention not to renew the lease at least a month before their current lease expires. To ensure your future renters will do this, include it as a requirement in your written lease agreement.
How Far in Advance Should You Renew a Lease?
No law governs when you can and should renew a lease in Nashville, TN. However, the ideal timeline or window is around 60 to 90 days before the current lease expires.
Two to three months gives you and your tenants adequate time to discuss the terms of the new potential lease. It also gives you enough leeway to look for a new resident in case the negotiations fall through.
Is It Always a Good Idea to Renew a Lease?
While it's typically better to push for a lease renewal rather than go through the process of securing a new renter, there are some situations wherein you should reconsider.
One is if the tenant whose lease is about to expire has a history of repetitive late payments or property damage. Another is if they have, on multiple occasions, violated the terms of the agreement.
Get Those Lease Renewals
Staying in touch with tenants, listening to their feedback, and allowing pets can all help you achieve success with lease renewals. However, if you want the most straightforward way to manage your Nashville rentals and keep them occupied year-round, consider working with a full-service property management firm.
Deselms Property Management is your premier choice in a real estate team in Nashville, TN. With a rich history and extensive experience of delivering exceptional property management solutions to landlords, property owners, and tenants since 1989, we have what it takes to help you maximize your investment properties.
Call us today for a free property consultation!
