Renewing a lease with a good tenant is often more profitable than finding a new one. Here's how to manage the renewal process effectively.
Why Renewals Matter
Keeping good tenants saves you:
- Vacancy costs (marketing, lost rent)
- Turnover expenses (cleaning, repairs)
- Time and effort
- Risk of unknown tenants
The Renewal Timeline
90 Days Before Expiry
- Assess tenant's payment history
- Review property condition
- Research current market rates
- Decide on renewal terms
60-90 Days Before
- Send renewal notice with proposed terms
- Include any rent adjustments (following RERA guidelines)
- Allow time for tenant response
30-60 Days Before
- Negotiate terms if needed
- Finalize new contract
- Prepare documents for signing
Before Expiry
- Sign new contract
- Update Ejari registration
- Collect any additional security deposit
Renewal Pricing Strategy
Consider:
- RERA allowable increases
- Market conditions
- Tenant value
- Property improvements
- Competitive positioning
Handling Negotiations
Tenants may request:
- Lower rent
- Property improvements
- Flexible payment terms
- Longer lease term
Be prepared to:
- Justify your pricing
- Consider compromises
- Know your bottom line
- Offer alternatives
When Not to Renew
Consider non-renewal if tenant:
- Has consistent late payments
- Has caused property damage
- Has complaints from neighbors
- Plans to change property use
ProperLE automates renewal reminders and tracks negotiation history for each tenant.