Your tenant’s rental agreement is coming to an end and you want to keep the good tenants you have known for years. Sending a lease renewal letter to your tenants before the current lease agreement runs out is a good way to let them know you want them to stay.
Top 6 rental property management tips for lease agreements
Assess and repair any issues on the rental property
Assess your rental property and fix any problems before it is time for your tenants to renew their lease. Problems left unfixed could cause renters to look elsewhere for housing and the reputation of your rental property management firm could suffer. As a bonus, you are likely to save money in the long run by fixing minor problems before they become big problems.
Make it official
Always use a lease agreement to make things official. Property rented without a new lease becomes a month-to-month agreement. Month to month arrangements can increase the chance of unexpected vacancy as the renter feels free to give notice at any time. Depending on your previous lease agreement, you could simplify the agreement form for the tenant. The new agreement could simply indicate that the terms of the present lease are to continue through another lease term. Be sure to include any changes to the lease agreement such as an increase in the rent or your rental property management policy.
Forget automatic renewal
Including an automatic renewal clause in the initial lease that takes effect unless the renter sends you notice of the desire to stop leasing your property can cause rental property management problems. Your renters may eventually forget that the lease includes this clause and fail to send notice before the deadline for vacating. Also, in some states such a provision is not allowed and its legality could be questioned by the courts.
Update renter information
Keep renter information up-to-date. Before each renewal period, ask that tenants update the current lease or rental application with any new or changed personal information. Ensure they include new emergency numbers, contacts, employment, pets and banking information.
Check for guests living on the property
Check to see if new tenants are living in your rental properties that haven’t been added to the lease. Ensure that these tenants are properly screened with a background check and have them sign the rental lease agreement.
Reward your tenant
After signing a new lease loyal tenants should be rewarded. Offer to upgrade old appliances, paint the walls or clean the carpets; these sorts of incentives will keep renters happy and encourage them to stay over time.
By implementing the tips provided above property managers can improve their chances of extending lease agreements with desirable tenants and thereby reduce marketing expenses to fill vacancies.
Son-Rise Property Management has been serving the property management needs of Bellingham and Whatcom County since 1996. Contact us today to see how we can help you find a rental property for your family or manage your rental properties.