Lease renewal reminder

I post a letter when it's time for a resident to renew their lease, but usually the letter is ignored. I follow up with a phone call two weeks later, which is also usually ignored. The last week of the month I usually post a copy of their lease renewal letter with the following hand written note on it.

"Please come to the office at your earliest convenience to sign a new lease. Please remember that the Month-to-Month rate will apply if a new lease is not signed by May 31st"

I would like to have a separate letter to post instead, but I'm not sure how to word it.

Suggestions? What do you do?

Thanks!

Editor Note: For those of you reading this post, a fellow Insider shared an example lease renewal letter .

What is your email address? I might have something you can use....

Send me one, too, Johnny!

[email protected]

Who has time to keep posting notes on doors and following up with phone calls.....here's a time saver for you!!


Dear ________,

Time flies when you're having fun! Can you believe your lease is expiring soon?

We sincerely appreciate your loyalty as one of our most valued residents and as a token of our appreciation, we are pleased to provide you with the following lease renewal options and incentives:

Option 1: Renew your lease at the rate of $_______ for a six month term and please accept this token of our appreciation. $50 off coupon to be redeemed anytime between now and the end of your new 6 month lease.

Option 2: Renew your lease at the rate of $______ for a twelve month term and receive a coupon of $100 to be redeemed anytime prior to the 12 month lease term.

Option 3: Go month to month on your lease at the market rate plus a $100 month to month fee.

Please call the office as soon as possible so we can prepare your renewal agreement!

Never ask them to renew....assume they're going to and give them their options....we always increase the monthly amount however, we offer them a few dollars lower amount if they sign a 12 month renewal as an extra incentive over signing a 6 month renewal. Be sure you calculate the monthly increase over the term of the lease to ensure your property is making money, not losing it.....

When they come into the office to discuss their options, make sure you've figured out how much its going to cost them to move, hire a mover, transfer utilities, etc.....point that out to them....anytime one of my residents give notice, I ask them point blank...may i ask why you're moving? I also ask them if there is anything I can do to change their mind. Don't be afraid to ask....their explanation may save you from losing future residents as well.

Good Luck!!!!

Thanks Deeann!

I use a similar letter. It's after this letter is posted that I have trouble getting them to come sign the new lease. Then of course they write their rent check for the old rent amount, which I can't accept, so I have to return it to them, and by then they owe a late fee, so then they are so angry they don't want to renew...

I'm hoping to find some way to prevent all this.

My email is [email protected]

Thanks!

Rose...I never refuse rent, even if it's not the correct amount. In the state of Oklahoma, if you refuse rent, in the eyes of the law, it is deemed as "paid", or so says the court if you end up having to file an eviction.

The Landlord Tenant laws are different in every state.

Accept what they give you then put a notice on their door for the remaining amout plus the late fee and then offer them an incentive that if they come in within 24 hours and renew, that you will wiave their late fee this one time.

Try that and see if it works for you. Really, the effectivness of leasing and renewing leases is all in the presentation!!

@ Sandy
@ Rose:

Check your inbox for the file...

I have also attached it here for others.

I send the letter using the following schedule:


1st time: 60 days from lease expiration date

IF NO RESPONSE

2nd time: 30 days from lease expiration date
This time, I include a sentence that reminds the residents that if they decide to leave, the law requires a 30 day written notice to be considered valid.
IF NO RESPONSE

I have staff pick up the phone and call the residents who have not responded 15 days out.

The nice thing about this letter is that it also captures renter's insurance information if your property requires it. On the other hand, if you don't require it; the paragraph that addresses it can be deleted.

Rose - We were struggling with a bit of the same: 30-45% opf residents would contact us after the initial lease renewal notices went out. (we contact a little over 120 days of of lease expiration). We gave a specific short time period where even though they may be getting an increase they could "double up" on their renewal bonus if they signed the lease by the deadline. THen we make a series of phone calls to the non-responders. THen we send out the second letter with option a, option, b... detailing all of there options and the financial implications of each. Finally, about three months ago we did two things differently: We took the initiave to give them the month to month charges and sent them a letter saying "We are so glad that you have decided to stay! Since we haven't heard from you we are happy to place you on the designated month-to-month status and ad the flexibility fee to your monthly balance!" It got a response.
We also created a "rent reservation" letter so that we could take partial payments and still spell out to the residents that it did not constitute a full payument nor did it prohi bit us from procedding with legals if needed. helped collections and put teeth to the letters and notices. our average monthly collection goals were very quickly met.

@ Deeann- Here in Oregon, the law is the opposite. If we accept partial rent, the landlord loses the right to demand the remainder.

If a resident underpays, and we accept it, in the eyes of the law, its the same as telling them the amount of rent due for that month is the amount of their partial payment and they never owe the rest.

Therefore, we must return any partial payments immediately.

@ Tara- great idea about the flexibility fee letter. I will try that one!

@ Rose:

Was my document helpful????

@ Johnny, It's nearly identical to the one I've been using...I'm always looking for ways to improve on it.

Thanks!! :cheer:

This letter has been pretty successful, using the method I do. I usually only end up sending 2nd notices to about a third of the original group, and only calling a small handful at the 15 day mark. Of those I end up calling, about half were on the fence about leaving and I was able to get them to renew. In any given month, I can have as many as 30 first notices going out, with about 10 second notices. At the 15 day mark, we may have to call 3 or 4 of the 10 that got second notices that month.

Starting the notifications 60 days out has been effective for me; any more, residents forget. Any less, residents feel too pressured.


I usually send out my renewal notices on the 10th of the month; because it is after rent has been collected, 3 day notices have gone out, and the attorneys have documents for those that have not paid.

How do I see the letter?

A previous message in this thread has the file attached... Just click on it.

I love that idea on the month to month! I have also had luck dropping off my business card in their door with a note....stopped by to see you....that gets good response too!

I would love some of these letters too! With 730 units, we have a decent amount of straglers!

[email protected]

Thanks everyone!

This is an easy one. I start showing their apartment

I offer something called an "Early Bird Special" (normally sent out 120+ daysbefore the lease expires). We already have them sent out through September. It offers 1 rate if they respond within 15 days and a higher rate if they respond after that date. It's been pretty effective.

I offer them a early bird renewal special. Say if the renew by May 15th they will be entered to a $500.00 off rent contest or we send the actual renewal to the door with the letter for them to sign and bring back to the office. We have noticed that most people just find it hard to make it into the office to sign the paperwork, so we have sent it to them. If anyone else has any really great renewal ideas pleae email me at [email protected]. HAPPY LEASING EVERYONE!

Peggy Crowley wrote:

I love that idea on the month to month! I have also had luck dropping off my business card in their door with a note....stopped by to see you....that gets good response too!

I resolve this by having a couple of extra 'resident only' office hours... I stagger my staff and open the office 1 hour before and close it 1 hour after posted hours. During this time, I do not do ANY other work, or answer the phone. The residents know that this time is for my team to focus on THEM and that they should come in to address any issues; whether it be to make a maintenance request, respond to (or sign) a lease renewal, pay rent, or even turn in a 30 day notice.

Hi there! Lease renewal reminders are so important and the residents that we work with really appreciate them. Our community portals send out automated renewal reminders with a calendar in the email to schedule a date to meet with their manager. These are all automated through the portal and are sent to the resident's email. They can click a button and schedule a time to meet with the manager. Our lease renewal service is sent out 90 and 60 days before the lease end date. It is a very affordable and green way to remind your residents!

You can learn more at www.innercircuit.com

Thanks for the great post.

Although I agree that residents have difficulty finding time to come to the office, I worry about posting a lease renewal to the door or sending it to them.

Just a few months ago I resorted to posting a lease renewal to the residents door. He called and asked me to because he is a medical student and literally has no time to come to the office. His culture prohibits his wife from leaving the apartment without his supervision, so I agreed to leave it for him.

The signed agreement was left in my box overnight so I processed it and deposited their rent check. The next day I received a call from his wife saying that she did not sign it and did not wish to stay. It turned into a huge hassle.

Fantastic idea Cody!

Johnny, That is the absolute BEST resident retention suggestion I have EVER heard!!! I'm going to implement it immediately! My residents will LOVE it!!!

Thanks so much for sharing!

I am so glad you liked my idea... let everyone here know how it works for you.....

Customer service is not rocket surgery (and, as a Pershing Missile veteran, I would know a little about that).....

Do you have a copy of the "rent Reservation" letter that you can share?

I have to get my residents to come to my office twice during the renewal process...once to sign verifications so that I can send them out becuase their rents are based on income and then once those papers come back, they have to come back to sign their lease. I have to sent a standard letter and I can't get around that, so I just added an anniversary card to this letter...I made them on the computer and it just says:

****

Dear (tenant(s) first name):

Your upcoming 5 year anniversary with us is an occasion worth celebrating!

It has been a pleasure having you as a resident and we would like to say "Thank You" by giving you a renewal gift.

When you come for your scheduled appointment (see attached letter), we will discuss your gift options at that time.

Again, thank you for being such an exceptional resident this past year and we look forward to another wonderful year together...

(All Staff signs it...)

****

My missed appointments have dropped by 95%...everybody loves to get something...and by not telling them what they will get makes them curious enough to keep the appointment...

Then once they are there, we do the paperwork and then I hand them a list of things they can choose from...these are things like CFL bulbs throughout their apartment, A new shower head massager, etc. Things that will benefit them and the complex...My property is not a 'rich' property and my residents average income is $16,000.00 a year, so they appreciate the small gifts...if your property has a bigger budget, you might be able to choose bigger renewal gifts...

I tell them to take the list home and think about it...when they come back to sign their new lease, they can tell me what they want then...

This has worked for me...their curious nature got them in them in the office and their actual free gift gets them back for the lease signing...

Hope that helps...

@Rose:

Now that it is 4 months after the post, how has your implementation of extended 'resident only' office hours been received by your residents?

I just uploaded a Rent with Reservation letter to the 'File' area. It should be available soon.

@Johnny,

They love it! I don't advertise it to prospects, so it's a pleasant surprise for them when they move in too. My office has two entrances, one to the outside, and one on the inside of the building where the apartments are. Residents are more apt to come in when the front door is locked and the blinds closed, because they know they wont be interrupted.

@ Rose:

I am so glad to hear that it has worked for you... Is this impacting your retention rates and how many work order requests are being made, now that they know you are making an effort to be available to THEM?

Is this being shared with those above you? How has the concept been received by them?

It's probably too soon to assume that my occupancy being at 100% is due to my resident only office hours. We are renewing more leases though. My boss is aware that my office hours are slightly less than my work hours, she thinks different things work for different properties and whatever works best for mine is the way to go.

You may want to raise your rates if you're at 100%. Just a thought.

Rose M wrote:

It's probably too soon to assume that my occupancy being at 100% is due to my resident only office hours. We are renewing more leases though. My boss is aware that my office hours are slightly less than my work hours, she thinks different things work for different properties and whatever works best for mine is the way to go.

@LOA: I agree completely. We can certainly argue that 100% means your rents aren't high enough.

Thanks much!
This letter came in very handy.

@ Johnny

I'm still using the "resident only" office hours beyond the hours I am available to prospects and it's fantastic. My residents really appreciate knowing I'll be here to get them a package or answer any questions. We're still 100% too, and renting $25-$50 over market.

I am glad that this is working well for you, Mindy!

[email protected]

Can you send it to me as well?

Please send me a letter also.

Sorry! Forgot to include my email address: [email protected]

Thanks!

Can you send me one too. Thanks
[email protected]

looking for ideas for lease renewal reminders. please reply [email protected]

We use a similar letter -But will also generate a front page that goes along with each option and the lease and ask that they take a moment to sign and drop off with their next rent payment. I also find it helpful if you divide your property up by agent and have them personally call and stop by to discuss renewal options etc. They call themselves Zone leaders and they take more ownership. It allows them to focus on a smaller group rather than everyone going after everyone... And the residents often feel more comfortable with their zone leader.

Hi,

I want to thank your for your example response for the renewal offers. It was really helpful and useful. Residents hate letter on there door and numerous phone calls. They love warm inviting emails to just simply say Thank you.

Thanks again,

Dana

What about when you call the resident for their renewal?

I am sorry I am brand new in this industry. I love to gain knowledge.

please i need a sample of lease reminder letter to a tenant, no increment, the rent is the same as that of last year, is an annual payment

With respect !!!

Hi! I am an assistant property manager needing somewhat of a guideline for lease renewals reminders. I saw your comment and thought I should reach out. Thank you!

Do you mind sharing the lease reminder letter with me? Thank you in advance!

Hi Johnny I really need some ideas to use a notice for renewal can you please share with me any examples