In the current recession many landlords are finding it harder and harder to get quality tenants to rent their investment property. Any time a tenant moves out of your property, you incur expenses to get the unit rent ready for the next tenant. Plus you have the additional expense of paying for your mortgage when you do not have any rental income coming in to cover it. If the property remains vacant for 2 or 3 months it can be very costly for any landlord. The best solution is to retain the existing tenants you have in your investment property. How do you get them to renew their lease every year? Here is your guide to getting tenants to renew their lease year after year.

The only way to keep tenants in your rental property is to convince them that your property has more value to offer than any other place that they can rent. There any many ways in which you can set the standard of value in your property. The first way is to pay close attention to the tenant’s needs and to immediately solve them. Their needs are the maintenance requests that they have on the property.

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Two months prior to the end of their lease, send your maintenance man to their property to ask them if they have any outstanding repairs that they need to have fixed. Trust me that the tenants will be shocked that you are proactive in addressing maintenance issues in the property. Once the maintenance man has a list of repairs, strive to have these repairs completed within 48 hours. This will leave a positive feeling with the tenant.



A month before their lease is due to renew, send them a new lease. Include with the lease an incentive plan that you can offer them to get them to stay in the property. The best incentive plan is where you allow them to choose the item or items that they want from a list of choices. My incentive plan allows tenants to choose Blu-Ray DVD players, iPhone, home office accessories, or gift certificates. If they do not like anything on the list, I let them write in what they want and, if the price is reasonable, I will get it for them. You can even up the ante by allowing them to select two items from the lease if they sign an 18 month or 24 month lease instead of a one year lease.



The items on the list should cost approximately ¼ to ½ of a month’s rent. One of the items on my list is ½ off the next month’s rent. We have found that allowing them to select a gift card that costs $20 in addition to the primary item works well. This lets them know that they will be getting two presents for renewing their lease. The gift card can be to grocery stores, gas stations, iTunes, movie theatre or restaurants. They pick the one they want or tell us the name of a place that is not on the list.

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Filed under: Landlord Tip • Landlording • Property Management • Real Estate Investing

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