Reasons Tenants Don’t Renew Their Leases
Property owners or their property management teams work hard to find and retain good tenants. Reliable renters pay on time and follow the rules. But sometimes, great tenants leave. There are many reasons tenants don’t renew their leases. Here are a few of the most common.
Reasons Beyond a Property Owner’s Control
A sudden job loss or health crisis can wreak havoc with a tenant’s ability to pay rent, and some may elect to find less expensive living arrangements. On the flip side, a promotion or an inheritance may send tenants looking for posher quarters or cause them to go house hunting for a property of their own. There isn’t much a property owner can do about these events in a tenant’s personal life. The best thing to do is to keep open lines of communication with all tenants, so those who have decided to move on can easily give plenty of notice.
Changes in the external neighborhood can also convince tenants to move on. When retail stores or an auto dealership replaces a row of brownstones, tenants may cease to find the neighborhood as charming as it once was. Property owners should stay ahead of neighborhood trends and zoning issues. Plan for the future of the rental property, including when selling it becomes the best choice. If rents are declining or big changes are coming that fundamentally alter the character of the neighborhood, it might be time to search for a different property investment.
Reasons Property Owners Can Address
A big hike in the rent can send good tenants packing, especially if it comes with little warning. Consider gradual, incremental rent raises year by year, rather than a big wallop every three years or so. Good tenants also leave due to poor communication and unresponsiveness. If a landlord doesn’t make repairs when promised or is difficult to contact, the frustration isn’t worth it for tenants who have other choices.
Property owners also must be diligent in enforcing rules and policies. Allowing tenants to flaunt rules about noise and pets erodes trust and increases conflict between neighbors. It can also mark your property as a “problem” property, and others in the neighborhood will complain, and maybe even take legal action to force property owners to do something about nuisances their tenants create.
Failure to upgrade the property with newer amenities is another common reason tenants don’t renew their leases. If a new property with the latest smart home upgrades and new appliances has come on the scene, tenants will see greener pastures and move on.
Professional property management in the Metro Atlanta areas, including Alpharetta property management companies, can help real estate investors find and retain tenants for their properties, as well as keep those properties in attractive condition.