We recently were asked this question by one of our Landlords – “Why do you want to push this tenant to renew? Won’t it make me appear desperate?”
My response: “You are!”
All kidding aside, he was and is desperate to keep his small industrial property full. With 8 tenants, there is always a vacancy looming. And, as I tell every one of our clients, “We play offense, not defense. And, if your property works for your tenants, don’t be that kind of Landlord who plays games. Let them know you appreciate them, want them to stay and actively engage with them when it comes to renewals.”
Here are some other things to consider/think about:
It depends on your specific situation, but in most cases being proactive and reminding the tenant about their PWN (Prior/Proper Written Notice) deadline is the smarter move.
This is common in market-rate commercial-style leases here in Oregon where the tenant must give written notice (typically 30–90 days before expiration) to exercise a renewal option. If they miss it, the lease often expires or rolls month-to-month, and you lose the guaranteed extension.
Here’s a clear breakdown of the pros and cons of each approach:
Proactive: Send a polite reminder (email/letter/text) 90–120 days out, with a follow-up at 60–30 days
PROS
- Avoids costly vacancies. Good tenants often forget deadlines. A simple reminder keeps reliable payers in place and saves you thousands in turnover costs (marketing, cleaning, lost rent, new tenant screening).
- Builds goodwill and retention. It shows you’re organized and tenant-friendly, which leads to higher renewal rates, fewer complaints, and better long-term relationships.
- Gives you control and time. You can start negotiating rent increases, terms, or concessions early while the tenant is still comfortable.
- Reduces drama and legal risk. Tenants rarely claim “I didn’t know” when you have documentation of the reminder.
CONS
- Takes a bit of time/effort.
- If the tenant is a problem (chronic late payments, issues, etc.) and you want them out, the reminder might prompt them to renew when they otherwise wouldn’t have. So, be thoughtful and selective here.
- Slight negotiation disadvantage — it can look like you’re eager to keep them, so they may push back harder on rent hikes. On the other hand, if you want them to stay but don’t want to appear at a disadvantage in a negotiation, just recall and consider the cost to re-tenant a space (commissions, potential tenant improvements, etc). I am willing to bet your mind will adjust accordingly.
Passive: Do nothing and let the tenant remember/handle the PWN themselves
PROS
- Zero extra work on your end — the lease puts the burden squarely on them.
- If they miss the deadline, you get flexibility: re-rent at current market rates (not always but much o the time, higher), choose a new tenant, or simply let it go month-to-month while you decide.
- Stronger bargaining position if rents have risen — you’re not “chasing” them.
CONS
- High risk of losing good tenants accidentally. People forget notices all the time. You end up with an unexpected vacancy exactly when you thought you had continuity. In a competitive market, that can be painful.
- Potential for resentment or disputes. Even if the lease is clear, a tenant might feel blindsided and leave on bad terms (or worse, cause issues during move-out).
- Looks less professional. Many tenants expect some communication from management these days. Good management will be proactive and not reactive.
Bottom line / My recommendation:
Be proactive unless you have a specific reason not to renew with that tenant (e.g., they’re difficult or you have a better replacement lined up). The cost of vacancy almost always outweighs the tiny effort of a reminder. Most successful landlords and property managers build this into their systems exactly because retention is far cheaper than turnover. Pikes Northwest is proactive.
Oh, and don’t overthink it. Here’s a simple template you can use:
“Hi [Tenant], just a friendly reminder that per your lease, your option to renew requires written notice by [exact date]. We’d love to have you stay — let me know if you’d like to discuss terms or need the renewal paperwork.”
Reach out if we can take that management burden or help with renewals.