Good tenants are hard to come by. So, of course, when you find the perfect renter, you will want to do everything that you can to keep them happy and living in your rental.
Implementing a lease renewal agreement before the end of their current lease is a good way to ease your mind and theirs. You'll know whether or not they want to stay, and they'll know that you aren't looking for new tenants to replace them.
Continue reading to learn why you might consider lease renewals for your rental property.
Offering a Lease Renewal
It's important that you only offer lease renewals to tenants that you are completely sure about. You might decide to renew a lease for your current tenant if they always pay their rent on time, take care of your property, and treat their neighbors with respect.
The first step is to give your tenant a "Notice of Renewal" which you can send to them in the mail or deliver in person so that you can answer any questions they might have.
Renewing the Lease Agreement
When it comes to renewing the lease for your rental property, you need to make sure your tenant plans on staying after the end of the current lease agreement.
If they are staying for an extended period of time, you will want to draw up a new lease agreement with any new terms you have. Then, you will send the new agreement to your tenants so that they can look over it. If they agree to the new terms, they can sign the lease and everything will be good to go when the current lease expires.
You might consider sending the new terms to your tenant between 60 and 90 days before the end of their current lease. Ask them to give you an answer within 30 days. This will give your tenant plenty of time to weigh their options without feeling rushed into a decision.
If the tenant doesn't accept the new terms, it will give you some time to find a replacement before they leave. Vacant apartments can cost you thousands of dollars.
Writing the New Lease Agreement
The goal of a lease renewal is to outline any changes you might need to make to the current lease agreement, such as a rent increase. When you write up the lease renewal, you'll want to include the details of the current lease along with its expiration date. It should also include the terms of the new lease (including an updated rent amount).
You can hire a rental property management team to write your lease renewals for you, especially if you have several properties to take care of.
Need Help With Your Lease Renewals?
Lease renewals don't have to be stressful. In fact, they can ease the minds of the landlord and the tenant in most situations. You might consider renewing your lease agreements for tenants that make your job easier.
Contact HomeRiver Group in Houston today to learn more about how our property management services can help you in the lease renewal process.