When a tenant has found a property they love to live in, the last thing they're considering is moving out. This means when it's time for lease renewals, they're hoping they're one of the tenants you want to renew.
However, as a property management company, lease renewals aren't always as straightforward as they seem, and there are some things you need to know about them that will help during that time of year.
If you want to increase your rental income while at the same time making it worth it for your tenants, read on now.
Understand What You're Offering
Before you offer lease renewals to your tenants, consider what you're offering them. This is especially important when you need to increase their rent but don't want to ruffle any feathers.
For example, if you're going to raise the rent, are you going to upgrade the appliances in some of your older properties, or will you provide another incentive for the tenant to stay?
You've got to ensure the changes you make to the leasing agreement are beneficial to both parties.
Provide Ample Time to Respond
As a rental property owner, you've got to provide your tenants with enough time to consider the renewal and make their decision. By law, depending on the state you live in, you've got to offer between 60-90 days of notice before the tenant's lease is up.
The reason you do this is not only to give them time to answer and make their decision, but it also gives you time to look for another tenant if they decide they're going to move out at the end of the lease.
Also, providing the notice of the renewal ahead of time will help you avoid legal trouble if you find yourself in court.
Make Sure Information is Accurate
When you enter the lease renewal period, it's time to ensure all the information in the lease is accurate. This means including things such as:
- Changes in tenancy length
- Increase in rent
- Additional fees for utilities
- Roommates that have been added to the lease
All of these things need to be added to the lease before you or the tenant sign it for renewal. You need to make sure you review the lease and add additional necessary information because it protects you in the event that legal action is taken against you by the tenant or vice versa.
Assess the Type of Tenant You Have
Lease renewals can be tricky because the goal is to ensure your properties remain filled, but there are times when certain tenants aren't working out. When this happens, you have to assess your reasons for not renewing the lease and then provide notice of these reasons.
Once you've done this, you've got to be ready to do the work to find another tenant to move into the property.
Things to Know About Lease Renewals
There are several things to consider when it comes to lease renewals. Things like providing tenants with advance notice of the renewal period and ensuring the information in the lease are accurate.
Want more information about property management and being a better landlord? Contact Chicago Style Management for aid today.