Getting Your Tenants to Renew Their Lease

Getting Your Tenants to Renew Their Lease

Zillow Rental Manager

May 3, 2023

4 Minute Read

Let’s be honest: Filling a vacancy is a hassle. It takes time, it sometimes means losing out on rent, and it’s probably something you prefer to do as infrequently as possible. So if you have a good tenant, how do you get them to stay? While some factors are beyond your control, such as your renter relocating for a new job, there are several things you can do to keep your reliable tenant happy and eager to renew.

Why renters stay

Renters stay put for a number of reasons: They may prefer the flexibility of renting, they might not be able to afford to purchase a home in their desired neighborhood, or they’re waiting longer to get married or have kids (frequent catalysts for buying one’s first home).

The good news is most tenants plan to stick around for a while. Zillow's comprehensive rentals market study found that 54% of recent renters are not considering moving in the next year, including 32% who have no plans to move in the next three years. Many renters who stayed did so because their rental costs were a good deal (72%) or because they weren't able to afford moving elsewhere (66%). 

What about the other half?

While half of long-term renters are happy with their rental situation, half consider moving elsewhere. The same study reported that of renters planning to move within the next year, 52% will move to another rental. Don’t let that happen! If you’re lucky enough to have a good tenant, you want them to stay in your rental.

So what can you do, as a landlord, to boost renter satisfaction? Here are 5 ways to keep your reliable tenant happy.

Be available and responsive

Start by creating a clear, detailed lease agreement that outlines your expectations. Review it in person to answer questions and establish good rapport with your new tenant. Let tenants know the best ways to contact you, noting any times that you’re not available, and then respond quickly to tenant concerns as they come up.

Tip: Zillow Rental Manager offers state-specific, customizable online lease agreements for free. This feature is currently available in select locations.

Show that you care about the unit and its occupants by checking in periodically. Renters sometimes hesitate to bother their landlords with small problems, but those can turn into bigger issues if not managed early.

Welcome them home

Help your new tenant get connected with the neighborhood so they can put down roots and have an incentive to stay long term. Providing a small welcome package with useful information such as take-out menus, a list of nearby points of interest — groceries, parks, community centers, post offices, libraries — and a link to the town or neighborhood blog is a simple yet effective way to help your renter get established.

Solve problems

When issues do arise, strive to take care of your landlord responsibilities promptly. If something is broken at your rental property, it may seem like just one more thing on your to-do list, but for your tenant, a nonfunctioning appliance or jammed window can be an annoyance that escalates to a major frustration if not attended to. Demonstrate your reliability by solving the problem quickly, without complaint, and follow up to ensure that the solution was effective.

Keep your tenants in the loop

Provide as much notice as possible when you know of a change or problem that will impact your tenants. Respect the fact that, for the duration of their tenancy, your property is someone’s home. Even if you’re doing something minor, like having the trees trimmed, inform your tenants in advance. Changes that cause more significant impacts, like a sewer line repair, increase in utility charges or an upcoming increase in rent should be communicated early.

Be human

Your rental property is a business, and you should manage it accordingly. But just as a good manager treats staff members with respect and empathy, be considerate of your tenants. Being a landlord is no excuse for treating your renters as inferior.

If you have a great tenant who lost their job and needs extra time to get their rent together, consider whether the “all business” approach of tacking on late fees is in your best interest in the long run. While you should be cautious about making exceptions to your policies, in some cases giving your reliable renter a little leeway — and earning their gratitude (and lease renewal) — leads to the best outcome. Keep in mind that due to the COVID-19 pandemic, there may be federal, state and/or local laws that temporarily limit or prohibit landlords from evicting a tenant for nonpayment of rent. Be sure to stay current on any landlord-tenant laws for your state, city or town, and speak with a local attorney if you have any questions.

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