Breaking the 60-Day Notice Myth: How Proactive Leasing Boosts NOI

In multifamily, some "rules" seem to have been written in stone, yet no one knows who actually wrote them. One such industry norm is the 60-day notice period for lease renewals and terminations. Property owners and managers have long operated under this guideline, assuming it's the best approach to maintaining stable occupancy rates. 

But is it really?

The problem with rigid adherence to a 60-day notice period is that it often forces operators into a reactive position. By the time a resident officially notifies their intent to vacate, the clock is already ticking. That leaves property managers and leasing agents scrambling to fill the soon-to-be-vacant unit while risking a dip in occupancy and a loss in revenue. The assumption that this timeframe is optimal for both owners and residents is outdated and, frankly, counterproductive.

Whoever made the rule that you should wait until 60 days before the end of lease to get a renewal decision? 

The Hidden Cost of Waiting

The key to maximizing occupancy and revenue isn’t in accepting market norms—it's in challenging them. Too many operators passively rely on price optimization software to adjust rental rates based on demand, rather than proactively managing lease expirations. This approach often leads to longer vacancy periods and unnecessary revenue loss.

Instead, property managers should be thinking 90, 120, or even 150 days ahead. There’s no rule that prevents operators from starting renewal conversations early. Many residents already know months in advance whether they plan to stay or move, especially in urban markets where job relocations, graduate programs, and other life events dictate housing decisions well before the traditional 60-day window. Why wait to ask?

By opening renewal discussions earlier, operators can secure commitments before competitors even have a chance to reach those potential renters. The result? More predictable occupancy rates, fewer last-minute surprises, and, ultimately, more control over revenue.

How to Take Control of Occupancy

A forward-thinking approach to lease renewals requires more than just early outreach. It’s about shifting from a reactive to a proactive leasing strategy. Here are three key actions that separate top-tier operators from those merely following industry norms:

1. Early Notice Is Legal—And Smart Business

If local regulations allow for early notice conversations, use them to your advantage. Proactively engaging with tenants long before the 60-day mark can uncover valuable insights about upcoming vacancies. Some residents might be willing to commit earlier, allowing operators to start marketing units in advance and reducing vacancy gaps.

2. Show Occupied Units and Pre-Lease Aggressively

Many property managers avoid showing occupied units due to logistical challenges. But in reality, leasing a unit before it becomes vacant is one of the most effective ways to drive occupancy. A well-trained leasing team should be able to navigate this process seamlessly, setting clear expectations with current residents and potential tenants.

3. Specialized Leasing Teams Close More Deals

A major flaw in traditional property management is relying on entry-level leasing agents who are expected to wear too many hats. Successful leasing requires professionals whose sole focus is closing deals—not handling maintenance calls or administrative tasks. A centralized, professional leasing team can maximize conversion rates and move units faster, rather than leaving pricing decisions to an algorithm.

The Market Is Not the Only Factor—Operations Matter

Many property owners blame market conditions for occupancy struggles, assuming that fluctuations in supply and demand dictate their success. While market factors do play a role, they are far from the only driver of leasing performance. Structural vacancy—how long it takes to turn a unit, the efficiency of marketing efforts, and the leasing process itself—is just as important.

Instead of relying solely on pricing strategies to balance occupancy, property owners should be asking:

• How efficient is our leasing process?
• Are we communicating with residents far enough in advance?
• Do we have the right people in the right roles to maximize leasing success?
• The most successful operators don’t just “follow the market.” They optimize their internal processes to outperform it.

Time to Rethink 60 Days

If the goal is to maximize occupancy and NOI, then blindly following a 60-day notice rule isn’t enough. The most forward-thinking operators recognize that proactive leasing strategies—early renewals, showing occupied units, and utilizing specialized leasing professionals—create a competitive advantage.

So, who wrote the rule on 60-day notice periods? More importantly, why are so many still following it without question? The best operators don’t accept the status quo—they challenge convention to maximize property performance.