Start renewal conversations 90 days before the lease ends. If you raise rent, keep it to a modest 3–5% and pair it with something specific, such as a small upgrade or a new appliance. A renewal costs far less than turnover, which averaged about $3,872 per unit in Zego's 2023 survey.
A lease expires in 90 days and neither you nor your tenant has mentioned renewing. Now is the time to start. Each renewal saves you $3,800+ in turnover costs.
Why Renewal Strategy Matters
National renewal rates:
- About 55% of apartment renters renewed when their leases expired in 2024 (RealPage data)
The cost of getting it wrong:
- Average turnover cost was about $3,872 per unit in Zego's 2023 survey of large apartment communities
- One month of vacancy = about 8% of a year's rent (1 of 12 months)
- 10 units at 50% turnover = 5 turnovers, or about $19,000 a year at that figure
The controllable factor: Much of turnover is controllable, meaning tenants left for reasons the landlord could have influenced. Industry estimates range from about half (apartment owner UDR's review of its own move-outs) to 60% (SatisFacts).
When to Start the Conversation
Start 90 days before lease expiration. That gives the tenant time to decide without pressure, leaves room to negotiate, and reaches them before they start looking at other places.
Many tenants start looking well before their notice deadline. If you wait until 30 days out, they may already have signed somewhere else.
What Makes Tenants Renew or Leave
Top Reasons Tenants Stay
Property Manager Quality (Biggest Factor)
- 57% of satisfied renters say their property manager is a main reason they are considering renewal (AppFolio, 2023)
- Renters satisfied with their management company were 72% more likely to renew (AppFolio's 2026 survey of 3,002 renters)
Maintenance Responsiveness
- Renters satisfied with maintenance were 81% more likely to renew (AppFolio, 2026)
Payment Flexibility
- 93% of renters are interested in flexible rent schedules, such as paying biweekly (RealPage 2024 National Renter Study).
Value Perception
- Fair pricing relative to market
- Good location
- Well-maintained property
Top Reasons Tenants Leave
Among unsatisfied renters considering a move, AppFolio's 2023 survey found these reasons:
| Reason | % of Unsatisfied Renters |
|---|---|
| A better apartment or house | 63% |
| Lower rent | 49% |
| A better property manager | 45% |
Other common reasons include buying a home, a new job, and family changes.
What you can't control: Home purchases, job relocations, family changes
What you can control: Rent increases, landlord experience, maintenance responsiveness
Renewal Incentives
Financial Incentives (Most Popular)
Rent discounts: Among renters who wanted a money incentive, 58% preferred a rent discount (Software Advice survey, 2015)
- Lock in a 2-year lease at current rate
- Offer a small monthly discount for early commitment
Cash incentives: 28% preferred cash in the same survey
- One-time signing bonus for renewal
- Free month's rent for multi-year commitment
Security deposit return
- Return deposit to trusted, long-term tenants
- Signals trust and appreciation
Property Upgrades
27% of renters in the same survey picked a unit upgrade as the incentive that would persuade them to renew.
Upgrades worth considering:
- Flooring upgrades
- Kitchen appliances
- In-unit washer/dryer
- LED lighting and ceiling fans
- Fresh paint
What to Ask for in Return
In return for an incentive, ask for:
- Longer lease terms: 2-year commitment
- Autopay enrollment: Guaranteed on-time payment
- Extended notice periods: 60-90 days instead of 30
The Renewal Conversation
The Renewal Letter
Include:
- Date of notice
- Tenant name and property address
- Current lease expiration date
- New lease terms (duration, rent)
- Any changes from current lease
- Deadline for response
- Your contact information
Tone and Approach
Do:
- Be direct and clear about the offer
- Acknowledge good tenants ("We've appreciated having you")
- Explain any rent changes
- Make responding easy
Don't:
- Be pushy or create artificial urgency
- Make threats about what happens if they don't renew
- Send a generic form letter with no personalization
Sample Renewal Approach
"Hi [Name],
Your lease at [address] expires on [date]. We'd love to have you stay!
For renewal, we're offering a 12-month lease at $[amount]/month. If you'd prefer more stability, we can also offer a 24-month lease at $[slightly lower amount]/month.
Let me know by [date] if you'd like to renew, or if you'd like to discuss the terms. Happy to chat.
Thanks, [Your name]"
Handling Uncertainty
When a Tenant is Unsure
Ask questions:
- "What would you need in order to stay?"
- "Is there something about the property or lease that's giving you pause?"
- "Is the rent amount the concern, or is it something else?"
Listen for concerns about:
- Rent amount (negotiate if they're worth keeping)
- Lease flexibility (offer shorter terms or month-to-month)
- Property issues (fix them before losing the tenant)
- Life changes (can you accommodate?)
Offering Flexibility
Options to consider:
- Shorter lease terms (6 months instead of 12)
- Month-to-month option at slightly higher rate
- Early termination clause with predetermined fee
- Rent payment date adjustment to match payday
The Month-to-Month Question
In many states, when a lease expires and neither party acts, it converts to month-to-month. Check your state's law and your lease's holdover clause.
Pros of Month-to-Month
- Automatic renewal without paperwork
- Flexibility for both parties
- Accommodates tenants who can't commit long-term
Cons of Month-to-Month
- Tenant can often leave with 30 days notice (the required notice varies by state)
- Higher turnover risk
- Less income predictability
The Pricing Strategy
Many landlords price month-to-month higher than fixed-term leases. A premium of 5-20% is a common rule of thumb; we have not found survey data on it. Rent control or local law may limit it.
The premium covers the extra turnover risk and gives tenants a reason to sign a longer lease.
Tracking and Measuring
Key Metrics
Renewal rate: Percentage of expiring leases that renew
- Target: 60%+
- Ideal: 70%+
Average tenancy length: How long tenants stay
- The typical renter stayed about two years in 2021 (Redfin analysis of Census data)
Renewal lead time: How far in advance tenants commit
- Target: 60+ days before expiration
Process Improvements
If renewal rates are low, examine:
- Are you starting conversations early enough?
- Is rent competitive with market?
- Are maintenance requests being handled promptly?
- Is communication professional and responsive?
Rentra tracks upcoming lease expirations and alerts you 60 days before each lease ends, and tenants can e-sign lease addendums in the app. If you want to start at 90 days, check your upcoming expirations a month before the alert. See how it works.