How To Procure Long-Term Tenants: Keyrenter’s Lease Renewal Experience

As a resident’s lease expiration approaches, most investors feel uncertain about the possible lost rent, expensive turnover, and vacancy exposure from not having long-term tenants. The lack of a clear plan for handling lease renewals or a defined procedure in case of non-renewals can cause stress. 

Most savvy real estate entrepreneurs know the secret to successfully navigating the renewal process, which is directly tied to building wealth through long-term tenancy and reduced vacancy periods.

To avoid lost income, making mortgage payments out-of-pocket, or expensive make-readies, initiating the renewal process early on is essential to property management. Luckily, this is easily achievable with the help of a capable property manager.

Keyrenter PMC handles the entire renewal process for investors: obtaining owner approval, sending out timely notifications to residents, negotiating rent adjustments, drafting a new lease, and even taking care of maintenance requests that require careful coordination with service providers. Doing so saves countless hours and money for investors and solidifies the landlord-resident relationship for the long term.

In this article, we’ll explain how Keyrenter’s automated renewal experience helps landlords and their residents, helping the former maintain a resilient rental business with long-term tenants and build generational wealth through real estate investments. 

Keyrenter’s Renewal Process For Tenants And Homeowners

Step 1: Renewal Notice (90 Days Out)

Our lease renewal process starts 90 days ahead of any lease expiration. This 3-month period gives us room to speak to investors, learn if they’d like to renew their lease, understand their goals, and plan rent increases on their behalf.

The 90-day period gives us plenty of time to listen to residents’ demands for renewal (if any), and take care of them, be it maintenance work, updates, or something else.

Keyrenter’s main priority as a property manager is to retain residents for as long as possible. As you’ll read next, we also have measures in place to swiftly find new tenants in case of non-renewals and guarantee a smooth transition with minimal costs.

Step 2: Owner Approval

The first thing we do is remind homeowners that their lease expiration is due through an automated email. We ask if they wish to renew the existing lease with their current residents and suggest new lease terms based on an updated rental analysis our team will prepare.

For example, if an owner’s current rent is $1500/mo, and local rent rates have gone up 5% in the last year, we’ll suggest a rent increase of $75/mo for a total of $1575/mo.

Owners can agree to or reject this lease renewal agreement using a dropdown menu found in the email, alternatively, they can schedule a time to speak to their dedicated property manager. If they approve the renewal, we’ll move on to the next step, where we pose residents the same question.

There are cases where investors would rather sell their property, move back in, or move one of their relatives in. If owners reject the renewal, Keyrenter will send a ‘Notice Of Non-Renewal’ to residents 2-3 months in advance to let them know they’ll have to move out at the end of their lease.

Owners may opt to speak to their dedicated property manager before making a choice to inquire more about their residents. “Are they paying on time, communicating responsibly, taking good care of the property, and reporting problems in a timely manner?”. This information may impact investors’ decision to accept their residents as long-term tenants or find new ones altogether.

That’s why Keyrenter handles lease renewals 90 days in advance: to adapt to our client’s priorities and find ways to help them achieve their goals.

Step 3: Tenant Approval

If owners greenlight the renewal, our system will automatically remind residents that their lease’s expiration is closing in, and will present them with the owner-approved renewal terms. This notification will contain the option to accept, reject, and/or schedule a time to speak to their dedicated property manager.

If tenants accept the new terms, including the rent increase and new lease period, the renewal process will jump straight to Step 6: Lease Drafting without further ado.

Residents may negotiate the terms of the new lease before signing it. For example, they may agree to the new rent price, but only if the landlord makes upgrades like replacing the carpet, repairing the blinds, or fixing the flooring first. Keyrenter will mediate these negotiations between both parties while helping the owners through a cost-benefit analysis to better understand the return on investment.

If the residents don’t want to renew, we’ll use the same 60-to-90-day window to re-list the property for rent, find new residents, and complete the necessary make-ready work. This is the same as our leasing process and it’s done to reduce vacancies to a minimum and prevent our clients from losing rental income.

Keyrenter’s lease renewal experience prioritizes clear communication and the retention of long-term tenants. However, we also have measures in place to guarantee a smooth transition and quickly find new residents in case of non-renewals.

Step 4: Review Of Tenant

Once residents have agreed to the terms of the new lease, we’ll review how well they complied with their lease. “Did they adhere to the lease’s terms, pay rent on time every month, and take good care of the property when they were liable to do so?”.

If we find instances where residents didn’t meet expectations, we’ll share them with the owner, who’ll assess the situation and have the final say. This is especially important if investors choose to accept the renewal notice without speaking with their dedicated property manager first.

Step 5: Tenant Notice (60 Days Out)

Residents can communicate their intention to stay or leave 60 days out from their lease’s expiration at the latest. If they choose to leave, investors will be notified automatically. Our team then re-lists the property, starts hunting for new long-term tenants immediately, and essentially starts the leasing process again. 

Step 6: Lease Drafting

If residents confirm their lease renewal agreement instead, our team will draft a lease agreement with the new terms. First, Keyrenter’s team will sign it on behalf of investors and then send it to residents to sign digitally. Investors will be notified of this in real-time.

Employing automation accelerates the lease drafting and signing processes and helps us keep vacancies to a minimum. It also grants investors the certainty that everything will be handled for them, and they won’t have anything to worry about during the renewal.

Step 7: Signed Lease

Residents will receive their new lease for review and signing. Once signed, investors will receive an automatic notification confirming the renewal.

Everything in the lease drafting and signing process is sorted automatically, efficiently, and seamlessly. This saves time, reduces our clients’ stress, and helps us secure long-term tenants for our homeowners so they can count on steady monthly rental income.

Step 8: Tenant & Property File Update

Once residents and Keyrenter’s team have both signed the lease, the renewal is considered to be in full effect. We’ll update our management software with the new lease terms to monitor residents’ compliance moving forward. 

Keyrenter’s lease renewal process is then considered complete well before the current lease expires, effectively saving landlords from worries, headaches, and countless hours spent on paperwork and/or hunting for residents. This allows our team to build client wealth by removing the headache of real estate ownership.

Keyrenter: Your Trusted Partner For Stress-Free Rentals

Keyrenter’s renewal process is designed to be straightforward and stress-free for investors and residents. Our automated system sends reminders early, leaving ample time for negotiations, and allows us to cater to the specific needs of our clients, like adjusting monthly rent prices or addressing resident requests.

Our priority during this 90 day-window is to be efficient, keep everyone in the loop, and turn residents into long-term tenants. If residents renew their lease, we’ll leverage the power of automation to draft and sign the new lease promptly. If they choose to leave, we’re prepared to re-list the property, minimize vacancies, and prevent landlords from losing rental income.

Keyrenter is committed to helping our clients build generational wealth through real estate and develop a steady rental income stream without the gaps, stress, and headaches that managing a property usually involves. If you’re a landlord and are interested in working together, schedule a discovery call with our local BDM through Keyrenter Arkansas’s website and find out how we can help you grow your rental business.