A successful landlord wants tenants who pay rent on time, take care of the property and stay for a long time. When you’re able to retain great tenants, you have lower turnover and vacancy costs, and your investment is able to grow in value. If you’re wondering how to renew a lease with your tenant, there are a few specific steps you need to follow.
Raising the Rent
Before you discuss lease renewal with your tenant, do a little research and decide whether or not you should raise the rent. If the rents in your market are climbing, you’re probably entitled to raise it a little bit. Just be careful, and keep the amount reasonable. If you have a great tenant who pays on time and causes little trouble, you don’t want to go chasing that tenant out of your property with an unrealistic rent increase. Don’t give good tenants a reason to leave your property.
At least 30 days before the end of the lease, you’ll need to contact the tenants and find out if there is any interest in renewing. If you want your tenant to stay, make sure you say that. Showing tenants that you appreciate them is important. It’s also a good idea to offer an incentive, especially if a tenant seems undecided. Perhaps you can offer carpet cleaning or fresh paint or even a gift card to their favorite restaurant or store.
Inspect and Document
Once you and your tenant decide to renew the lease, conduct a thorough inspection of the property. This will help you and the tenant to determine what needs to be done and it also gives you the opportunity to make sure there isn’t any maintenance that needs to be done. Put any repair requests in writing, and make sure your lease is also renewed in writing.
Renewing a lease should be fairly straightforward, especially if you’re pleased with your tenants and your tenants are happy living in your property. If you have any questions about the process or what you need to do, please contact us at Your Dream Real Estate, and we’d be happy to provide more information.