As the trends go, especially here in Toronto, many millennials are choosing to buy homes in cheaper places throughout Ontario to rent it out. It’s definitely an easier way to make money and support your growing travel budget.
Once you have tenants there are a number of things to worry about, one of them being lease renewals. If you have good renters, and their lease is coming to an end, don’t panic. There are a few simple things you can do to help them stick around.
Invest in their lives
If you have tenants living in your rental, you’re likely eligible for a handful of rental property deductions. Keeping your renters happy and in place is important to keep a steady income as a property owner.
Take some time out of your busy schedule every now and then to simply check in on them. Ask them about their lives when you see them; engage in small talk—even if just for five minutes. Give them a nice card and some chocolates during the holidays, and see if they need help with new furniture. It will go a long way.
Ask in advance
The sooner you know their plans for renewal (or not), the better for everyone. While the standard lease agreement says 60 days is required, 90 days is a reasonable time to begin inquiring. Don’t be afraid to show enthusiasm in having them stay in your rental property, compliment them and show them you value you them as tenants.
By bringing it up far in advance, they will begin to realize how much you appreciate their dependable and respectful habits. People love to feel appreciated, especially honest and humble people (aka, the best renters). Additionally, these renters will have plenty of time to consider any new incentives you might have to offer.
Sweeten the pot
It’s the little things that will set you apart and maintain your tenant’s favorable image of you. Maybe you provide a package of lightbulbs or toilet paper when they move in. Or offer a free upgrade if they are renewing their lease (like fresh paint or an upscale appliance). One time a landlord offered to paint our rental unit in the colour of our choice before moving in. I can’t tell you how much of a difference that made for us
You can even incentivize them to sign on for a longer lease by discounting the rent a little. Offer a small grace period of a couple days for collecting rent. When the tenant feels like they’re genuinely being taken care of, it’s worth it for them to stay put and renew again and again.
Plateau the rent
Even though the government has instated rules that limit you from increasing rent too much, be mindful of taking advantage of the rules. Keeping the rent the same price after renewal is an excellent incentive for your tenants to stay. Raising rent can be risky, especially if you think they are seriously considering moving away. By maintaining the same price, you’re telling your tenants, “The arrangement we have is working great and I’m happy to keep it that way.”
Share the agenda
Renters have many rights first and foremost so make sure you are up to date about what you are allowed and not allowed to do to your rental property while there’s someone living there. However, if you genuinely have plans in place for a big improvement, renovation, or some other perk soon, let them know.
This can be anything from installing new laundry facilities, to updating the heating and cooling, to providing better parking options, to putting in a pool. Whatever exciting project is in the works, feel free to be up front about it. Updates to your rental properties are, by association, updates to your tenant’s lives there.
Do your job
Like any job where you make money, being a landlord is not something for you to take lightly. In short, good tenants expect a good landlord. If they are unhappy with their rental or the person who owns it for any reason, they are going to consider leaving. Simple. This means keeping up with routine maintenance, taking care of shoveling snow and/or mowing the lawn if applicable and ensuring the curb appeal stays fresh. You should be responding to concerns within reasonable time frames, and always remaining patient and professional in your execution. Urgent repairs and problems should be handled quickly and gracefully.
At the end of the day if you’re a good landlord and you have good renters, odds are that you’ll be smooth sailing for some time to come. However, it never hurts to reward your tenants for being good people with some small incentives and prompt home repairs. Go the extra mile for your renters, and they might just go the extra year or two for their landlord.
