I just received my renewal offer, but it states that the offer expires

Hi All,
I’ve been in the industry for 5 years now and have worked at 2 companies throughout that time, and I am a renter. I just received my renewal offer, but it states that the offer expires on Feb. 9th (which is more than 60 days from my lease end date), and after that date they can reevaluate the offer. I’ve never worked or lived at a community that did that, so I’m trying to find out what to expect Feb. 10th if I don’t give them a decision by then. If anyone is familiar with this practice, can you tell me if the rate usually increases or if this is a tactic used in hopes to get residents to sign for the original offer (assuming it’s the higher rate)?

In my experience, on a stabilized property, the first offer is the best option. Unless the occupancy at the place you live is low, then they might get desperate and offer you a lower price.

They are most likely trying to secure early renewals and are offering you a best rate now and if you wait it may go up.

We send renewals 90 days out

Both. We send an offer with expiration and re-evaluate rate based on how many folks have renewed by that time or if we are getting availabilty. It could go up to higher rate based on these factors.

If you don't renew or give notice, it will go month to month which could be significantly higher.

Yes. The tactic of letting you know the offer can be updated (so that pricing can be in line with most current market conditions) is fairly common. I’ve seen refreshed offers provide both a higher and sometimes lower rate depending on comps and exposure.

We send renewals at 180 days to lease end and give to 150 days to lease end to accept (this is per city ordinance). So it varies a lot. Early bird specials are crappy and tenants should not have to live with that uncertainty.

They are offering an early renewal. Nothing against that. They are free to re-evaluate the offer anytime within lease terms.

They are giving you a “ deal “ if you renew early.

You should reread the letter. Usually there’s a month-to-month rate if you don’t do anything.

If your required to give a 60 day notice they are trying to get you to tell them if your renewing or not. As if yiu dont give 60 days and you dont renew you will be charged the higher month to month charged on day one after lease expires if you dont give them your written notice its considered a skip and your reliable for any break lease fees even if its at the end of your lease which at minimum is 2 months no notice fee usually.

I would suspect that the offer will increase, as your opportunity to find something else within the time frame is reduced.

“Early bird” specials are very common. It tries to put urgency in your decision to help forecast future occupancy. Also, it’s a great tool to help manage lease expirations. Example, if 20 letters were sent out all with 12 month offers, after the early bird date expires they could change to 11 or 13 month offers to help balance the expirations - this is more what we use it for (Greystar, NC, Daily Pricing). The price may not change, especially with the challenges of this 2024 market. Talk with the team and see if you can get a better understanding.

Properties that have variable prices do this. We use LRO so the software determines the price based on availability, current market price, lease term, etc. The early offer (the one you received) is likely the best rate you’ll get and with a 60-day notice requirement, we send those notices well in advance so that you have time to make an informed decision. Just remember to include the cost of moving when looking at your options (app and admin fees, deposit, new rent price, moving truck, etc) as it all adds up quickly.