Author Topic: How and When to approach tenants in a down market  (Read 995 times)

CatInTheHat

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  • Age: 37
  • Location: Denver, CO
How and When to approach tenants in a down market
« on: March 05, 2017, 12:20:23 PM »
L&G - My old lady and relocated to Denver, CO last year from Calgary, AB.  We managed to somehow rent our small condo out before we left last May for $1600/mo., which was slightly above market in a depressed economy and a complete renters market.  The market has slightly improved since then, but it is still a renters market. 

The tenants have been in there for almost a year now and have paid entirely on time with no issues, and are due up at the end of May.  My question is given the circumstances of a down market there, when do we approach them for a renewal, how do we do it, and how much do we ask?  Should we wait for the traditional 45-60 days, or start now?  Should we offer to reduce the rent (market would be about $1475-1500) and if so how much?  Should we offer one month free for a year renewal at the same rate, or just send an email to get a feeler on where they are at?  The condo doesn't really need anything to it so I'm not sure we could offer improvements to the unit as an incentive.  We can't sell the unit for at least another year based on a crappy loan that was taken out at the time. 

Any input would be appreciated.     

Ocinfo

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Re: How and When to approach tenants in a down market
« Reply #1 on: March 05, 2017, 12:59:01 PM »
Just ask them if they're happy and what their plans are. I have tenants that hit 3 years this month. Had a 1 year lease that converted to month to month with a $50 per month increase. I usually talk with them every 3-4 months and just ask if there is anything broken or bothering them that they would like fixed. I actually prefer month to month tenants after they demonstrate they are good since either one of us can terminate the lease with sufficient notice and I like that flexibility.


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Megma

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Re: How and When to approach tenants in a down market
« Reply #2 on: March 05, 2017, 01:16:20 PM »
I'm in a similar situation, our tenants lease is up the month before our wedding, prices are flat and it would be really obnoxious timing if they move out. They pay on time, good rate for our place and rarely have asked us anything.

I'm planning to ask mine if they want to renew for a year 60 days out and that we won't increase the rent this year. If prices were up, even though the timing is bad for us I might have done a small increase.

I think one free month is a really big incentive, most people don't want to move anyway and probably don't check prices unless they need to move for another reason (job change, want a pet, etc).

Fishinshawn

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Re: How and When to approach tenants in a down market
« Reply #3 on: March 05, 2017, 05:05:39 PM »
I think most people hate moving, I know I do. If it were me I would just ask them if they want to renew or not. I certainly wouldn't offer them a free month, that would cut into your profit much then need be. At my current place we signed a 1 year lease, we have done more than our share of the upkeep on the grounds and in fact made substantial improvements because we are happy there. We have been month to month for 2 years now, and until things change in the area we won't be buying, so we plan on staying put for at least another year. If you have good quiet, pay on time tenants they likely don't want to move either.