How to Spot Warnings that Residents won’t be Renewing their Leases

Renter and property manager relationships can be difficult to navigate, even at the best of times. With a pandemic forcing hardships onto many industries, neither renters, nor rental property owners are immune to the current economic conditions. At the end of the day, you have to ensure that your properties are remaining profitable, or at least not losing money — which means keeping those properties filled with reliable residents. If you find yourself stressing out about noncommittal renters, don’t fret: these pointers will show you how to tell if your residents are not renewing their lease.

Renter and property manager relationships can be difficult to navigate, even at the best of times. With a pandemic forcing hardships onto many industries, neither renters, nor rental property owners are immune to the current economic conditions. At the end of the day, you have to ensure that your properties are remaining profitable, or at least not losing money — which means keeping those properties filled with reliable residents. If you find yourself stressing out about noncommittal renters, don’t fret: these pointers will show you how to tell if your residents are not renewing their lease.

Recurring Late Rent Payments

One of the easiest signs to identify — yet not necessarily a confirmation of non-renewal — is habitual late rent payments. Under normal conditions this is often an indicator of an unreliable resident; but as the coronavirus has shown us, even the most dependable of renters can fall on hard times. While late payments alone do not mean that your renter is unlikely to renew their lease, if it becomes a frequent occurrence or the resident exhibits other signals that they might not renew, it would be a good idea to start thinking about future occupants. You can also try to encourage timely payments by setting your residents up to pay their rent online.

Recurring Late Rent Payments

One of the easiest signs to identify — yet not necessarily a confirmation of non-renewal — is habitual late rent payments. Under normal conditions this is often an indicator of an unreliable resident; but as the coronavirus has shown us, even the most dependable of renters can fall on hard times. While late payments alone do not mean that your renter is unlikely to renew their lease, if it becomes a frequent occurrence or the resident exhibits other signals that they might not renew, it would be a good idea to start thinking about future occupants. You can also try to encourage timely payments by setting your residents up to pay their rent online.

Your Renter Wants to Negotiate a Shorter Lease

This will most likely appear in the initial signing of the lease. Your resident may ask if the property is available on a shorter-term lease — maybe an eight-month lease, six-month, perhaps even month to month; if this happens, the resident could possibly view the property as a steppingstone or may not even plan to live in the area long. This doesn’t have to mean that they aren’t viable options as renters for the time they’re asking, though it’s likely a red flag if you’re looking for a more permanent resident. Depending on how much it costs for you to fill the vacancy, you may want to increase the monthly rent for a short-term lease to offset your expenses.

Your Renter Wants to Negotiate a Shorter Lease

This will most likely appear in the initial signing of the lease. Your resident may ask if the property is available on a shorter-term lease — maybe an eight-month lease, six-month, perhaps even month to month; if this happens, the resident could possibly view the property as a steppingstone or may not even plan to live in the area long. This doesn’t have to mean that they aren’t viable options as renters for the time they’re asking, though it’s likely a red flag if you’re looking for a more permanent resident. Depending on how much it costs for you to fill the vacancy, you may want to increase the monthly rent for a short-term lease to offset your expenses.

Questions About Canceling Lease Renewal

This is one of the most telling signs that a resident won’t renew. Many leasing agreements include automatic renewal clauses that require tenants to give notice before a certain date if they plan on terminating the contract once the current lease is up. If your renter asks you when this date is, it almost definitely means they are shopping around for new places and may not renew. Another sign that may come paired with this one would be inquiries about your resident’s rental history from other landlords. Automatic renewal clauses at least help to give you some heads up that you’ll need to start looking for new renters.

Questions About Canceling Lease Renewal

This is one of the most telling signs that a resident won’t renew. Many leasing agreements include automatic renewal clauses that require tenants to give notice before a certain date if they plan on terminating the contract once the current lease is up. If your renter asks you when this date is, it almost definitely means they are shopping around for new places and may not renew. Another sign that may come paired with this one would be inquiries about your resident’s rental history from other landlords. Automatic renewal clauses at least help to give you some heads up that you’ll need to start looking for new renters.

Other Indicators

Trying to anticipate whether or not your residents will renew is never easy. Those listed above are some of the most revealing indicators that a lease renewal is unlikely. It is also important to note other, more subtle signals the renter is not committed such as a reluctance to talk renewal or closed body language when discussing the subject. If your resident is constantly trying to negotiate lower rent, complaining about the cost of utilities, or asking for updates to the property, they likely aren’t renewing.

Property managers like you, of course, maintain high standards for their residents so they attract long term renters; however, if you have done everything you can to be hospitable to your renters and they still exhibit some of these behaviors it is probably time to make preparations for new occupants.

to stay informed!

Other Indicators

Trying to anticipate whether or not your residents will renew is never easy. Those listed above are some of the most revealing indicators that a lease renewal is unlikely. It is also important to note other, more subtle signals the renter is not committed such as a reluctance to talk renewal or closed body language when discussing the subject. If your resident is constantly trying to negotiate lower rent, complaining about the cost of utilities, or asking for updates to the property, they likely aren’t renewing.

Property managers like you, of course, maintain high standards for their residents so they attract long term renters; however, if you have done everything you can to be hospitable to your renters and they still exhibit some of these behaviors it is probably time to make preparations for new occupants.

to stay informed!

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