Renters make up around 36% of all US households. And every year, millions of people go through lease renewals. Unless they've had enough of the landlord, in which case it's time for a new lease agreement and a new tenant.
Every landlord wants a smooth lease renewal that keeps their rented property occupied. A vacant property is one that's not earning money, and one you still have to pay property tax on. Knowing how property management should handle the lease renewal can ensure things go off without a hitch.
Keep reading for a brief guide on how to secure your golden tenant for another year
When to Offer Lease Renewals
Renewing a lease is a great way to lock in a good tenant. You should only offer a lease renewal to tenants who have obeyed the lease agreement. If you're lucky, this is a tenant who paid rent on time and took very good care of the house.
Typically, a lease goes for 12 months. Some landlords may choose to give a longer lease to a good tenant. You should offer this renewal no later than 90 days before their current lease expires.
Ideally, your tenant will respond ASAP if they plan on leaving. This gives you a couple of months to find new tenants in the meantime.
Things You Should Include in Your Lease Renewals
A lease renewal is essentially another contract, although it often has new stipulations. Since this is your property, you are well within your rights to change the rules. You may change them for your own benefit, or as leniency for a trustworthy tenant.
Here are some things that may change for a new lease agreement:
- Rent increases
- Rule changes (pet allowances, etc.)
Take Care When Increasing the Rent
Inflation and high property taxes force many landlords to raise rent. However, there is a procedure for doing this. You need to provide what is known as a rent increase notice.
In essence, this ensures that your tenant agrees to the rent hike. They must sign it to make it official. You cannot, under any circumstances, begin to charge higher rent without advance warning and acknowledgement on their part.
Lease Renewal Delivery Methods
Like a normal lease, you can have digital and physical options. Deliver a paper lease renewal by hand, or mail it to them. Make sure you get all the signatures and you're good to go.
It's important to be as forthcoming as possible with this step. Handling it respectfully and professionally will avoid any misunderstandings. Likewise, you should be clear to the tenant if you do not intend to renew their contract.
Manager Properties with Blue Line
Lease renewals typically mean you have secured a good tenant for another year. Provide them with their lease agreement at least 90 days beforehand, and include any lease changes. Handling this ASAP and in a respectful manner will help you to avoid any issues with your rented property.
Blue Line Property Management takes the stress out of property management and lets you get back to life. Visit us here to see the services that we offer.