A recent survey showed that 52.5% of renters decided to renew their leases when the opportunity presented itself. It's important that, as a landlord, you understand lease renewals to ensure you're able to offer them when necessary to retain renters in your properties.
If you're unsure about things like a lease term and sending a renewal notice, you've come to the right place. We've got some landlord tips that will help you increase your number of lease renewals each lease term.
Saves on Cost & Time
The first thing you need to know about lease renewals is they can help save you valuable time and money. Think about it when someone moves out of one of the properties, you've now got to dedicate time to finding another tenant to occupy the space.
To attract the right tenant, you've got to spend money on things like:
- Marketing materials
- Tenant screenings
- Endless tours of your property
And even after you've done these things, there's no guarantee that the potential tenant will sign a lease. If there are no reasons you wouldn't want the tenant to renew their lease, ensure you've sent them a renewal notice in advance before their lease ends.
Offering the Renewal Notice
The first thing you need to do before sending a renewal notice is take the time to review the laws in your state. By doing this, you can ensure you're meeting all the requirements needed when sending notice of a renewal opportunity.
Before you send the notice, use this checklist because specific pieces of information should be included in the letter. This information includes:
- Date the notice was sent
- Address of the property
- Tenant name
- Method to contact you if they wish to renew
- Date when their lease ends
- Include the length of the lease and monthly rental cost
This way, the tenant will have all the information they need to make a decision about renewing their lease before contacting you. If you plan to offer the notice in advance and the tenant is in good standing with you, it may be wise to offer an incentive to renew their lease.
This doesn't necessarily have to be a reduction in their monthly rent. But offering an upgrade on their rental or a gift card goes a long way.
Don't forget to send the notice in advance, so the tenant has time to reply and make their final decision.
What Are Your Options?
Although offering a lease renewal is to your benefit, it's not mandatory. There may be underlying reasons why you don't wish to renew a lease.
If this is the case, we recommend taking the same courtesies and letting the tenant know of the lease termination ahead of time. While that is one option, you can also offer tenants the ability to rent their property on a month-to-month basis instead of a year-long contract.
Lease Renewals: Things Landlords Need to Know
When it comes to lease renewals, you've got to take the proper steps. It starts with understanding the laws in your state and giving the tenant notice in advance of the opportunity to extend their lease.
If you need help with your rentals or tenants, contact Harrisburg Property Management and let us lend you a hand.
