Mark Lease Renewal Made Easy

Rider Lease Preferential Form

hey this is Clint with rent like a pro in this video we're going to talk about lease renewals and why that's a good time to raise the rent renewing the lease should be easy you can email it to the tenant they sign it send it back you can take one step further and use ecig matures you send them the document they sign it through email and send it right back depends on what state you're in some states recognize these signatures some states don't you can make these really easy for the tenant though by already having the terms and all that goes into renewing the lease outlined ahead of time now the pros don't like their tenants going into month-to-month leases and a lot of landlords like going into month-to-month leases because they feel like they can change the terms or evict with more freedom because its month-to-month the pros like to do keep them in leases and do renewals so they can do more lease targeting that is target when all your leases come up it's a volume thing when you start to get a higher volume you're going to want people to be able to move in and out during specific times of year especially if you're in college towns or winter areas places where the weather makes a difference some of the properties I own are in an area where 50 percent drop in moving in the winter is very cold in the summer so I like my leases to end in May April May area so it's before the big rush cuts my vacancy time in half it's a technique the pros use to target their leases and renewals are how they accomplish this here's your rent like a pro insider tip having a month-to-month fee outlined in your lease helps a lot when it comes time to renew it can be a incentive or a penalty however you want to look at it but either way it's built into the lease what happens if the tenant absolutely wants to go month-to-month and if they do now it's a revenue stream for you for example in our lease we put in there it's a $50 month-to-month fee in most lease if it's a higher dollar property than well my check and then we can use that as a technique later to adjust the Rance move things but if they really want to go month-to-month alright we'll make an extra fifty bucks a month and let them do that alright so when the tenants lease is coming to an end this is a great time to decide if you have room to raise the rent here are some things you want to consider first have rental prices gone up in your area how is the tenant caring for the property do you want to renew with this tenant do they pay on time are they difficult things like that and make sure to consider vacancy rates if a lot of similar units are sitting empty then obviously you want to be a little bit more negotiable when it comes to renewing so after you've looked at these factors you can decide if it's a good time to renew the lease or not and you can evaluate if it's a good time to raise the rents or offer an incentive to keep the tenant in there all right so let's talk about some popular incentives one common incentive is to offer the tenant to lock in their current rent if they go month-to-month the rent can be raised things can be changed but if they lock in their rent now you'll keep it right where it's at in tough markets you may offer first month's rent discount or other straight-up discounts for signing the lease renewal like $200 off your next month's rent if you'll sign the renewal now repairs and upgrades if you're talking to a tenant about renewing or they email you and say you know I have this problem in that problem and you can do a repair and upgrade and they'll stay there longer like if they're going to move out over carpet or something you want to weigh out the cost and see if there's some repairs and upgrades you can do to your property that'll keep the tenant in there and now some incentives that you see a lot in the multifamily market like movie tickets iPods gadgets and gizmos they work I've been amazed at what I can get people to do for movie tickets alright now let's talk about raising rents because that's really whatever he wants to hear right okay popular techniques on this one of them is the the classic sales step down you say you know the market around and and this needs to be true you don't want to lie to your tenants because they can look at what other ones are renting for but the markets gone up a hundred bucks on units like yours but if you renew will only raise it eighty even better if you're using the month-to-month fee and it's say it's fifty bucks you go you know what if you go month-to-month it's an additional $50 a month but if you sign now we'll only raise at 35 and I've literally had people while signing the renewal and I raise their rent 35 bucks a month thanking me oh thank you so much for saving me that money we did we saved money they didn't want the month but at the same time we bump the rents and they're happy about it that that's how you identify really good techniques another technique is building the increases into the lease so 5% a year watch yourselves because if the market is going up you could get stuck with a lower increase than what you could actually get in other words if the markets gone up considerably more you just tied yourself to only a 5% increase on the other hand it's an automatic increase every year and some landlords use that quite a bit another technique is to not even negotiate at all just email them the renewal with the new amount on there and in the email say please have this back to us within seven days see what they do a lot of times you'd be surprised how many people sign it send it back you just raise their rent just kind of take some fill on that one but you can kind of throw it to make them know you're at if they do email you back saying what's with the increase law you can try to negotiate from there another good technique to use when renewing is to tie it to the terms if you want to renew for six months we'll raise it a hundred dollars but if you'll sign for another 12 months we'll only raise it 50 or whatever you can play with the numbers but longer lease terms with good tenants is still money in your pocket saved from vacancy and obviously if there's something you can do to improve the property that justifies a rent increase and the numbers make sense then do it like new carpet or something that's going to need anyways too many landlords wait till it's empty to make these improvements if you can keep a tenant happy and in there with some minor improvements do it now this one doesn't raise the rent but it's still money in your pocket if the current tenants are really good pay electronically on time no hassles just great tenants you might want to consider offering them much longer terms and locking in their current rate or a rate that's really good and saying hey know what you guys have been great I do need to raise the rent every year but if you'll sign for an extra three years or whatever terms you want to put in there I can lock your right in right now this one is great in just saying locking them in they're good tenants they might have kids in school whatever's going on that they want to live there a long time let's get all the renewing out of the way lock him in for four years and move on with our lives they're good tenants so you know it's worth it tenna called in and wanted a new stove it wasn't broken it wasn't a maintenance request it was just very outdated it was original back from the 70s it was that mustardy orange it's really cool I did notice her lease was coming up within a couple months so we take a look at that and go you know what you're coming up for renewal in a few months if you'll go ahead and renew now we do have to get your lease up to market value so it was scheduled to increase by about 75 tell you what we'll put a new stove in there if you'll renew now for an additional 50 bucks a month for another 12 months she was way happy he's like oh yeah that's great you're saving me money I was going to have to pay 75 you guys are really going to raise the rent yeah but we can do it 50 and we'll give you the new stove you've been a great tenant the oven cost about 300 bucks and I was able to make an extra 600 bucks for the year on that property and we've kept our vacancy rate down by keeping the tenant in there and raised the value of our property with an upgrade getting tenants to renew their lease shouldn't be a hassle as a matter of fact the pros make it pretty easy a lot of landlords get caught up in their hesitations to raise rents on good tenants they've been through so many bad situations they don't want to mess with the good ones I go no you know so share those with us on the forum if you have any hesitations put them on there thanks a ton for watching