Hey BP community. I have a tenant that might be interested in renewing their lease. I had a couple of questions in regards to renewing. Do I have them sign an entire new lease? Is there a limit to how much I can increase the rent? I believe the state of TX has a limit but my understanding is that a formal rent increase notice must be submitted and it can’t be more that X% if the increase is to happen durning the original lease timeframe. Does this apply for renewals? In the renewal I want to increase the rent, change the grace period from 5 days to 3 days and obviously the new start and end date of the lease. Any info is appreciated!
You do not "need" them to sign a new lease, however we do a new one each time as a best practice, in order to address things like the due date etc. In Texas there is no limit on the rent increase, and you cannot increase the rent during the term of the lease. You are required to give whatever advanced notice is required by your lease, but not less than 30 days before the next rent payment is due. I'm an Investor, Broker, Property manager in Texas.
Joseph, As a courtesy and for better communication, I give tenants 2-3 months advance notice of rent increases so they have time to look for a new place in the event they decide not stay at the new rent rate. Regarding how much you can increase rent, as far as I know, there is no limit in Texas although obviously the market rental rates for similar properties at your location will determine that. If you are using an online property management app such as Landlord Studio, you can simply bring up the property in question and edit the current lease with the new amount, grace period etc. I also provide them a hard-copy of the renewed lease which I upload to my online property management app for the record-keeping purposes etc. Good Luck!
Texas has no limit. I'm in Texas. Having to do the same thing, I'm giving notice 2 months ahead soon. In the notice, I'm stating increase b/c of taxes and insurance going up and to please let me know if they are not renewing by xxx date. The required notice of non-renewal is 30 days before current lease is up.
I also understand that the jump is a little much for them so I did invite them to discuss with me if they have any concerns. I try to keep an open line of communication with them. Honestly, even with my increase, I'm still consider a very good bargain in my area. I checked local rents for a space as big as mine. So if they want to discuss, I can bring that up. They are welcome to shop around, but they won't find a much better deal.
Also, I'm going to offer lawn care this time b/c they aren't doing a very good job. It helps with 2 things: 1. the lawn is kept up b/c I'm in control now and 2. they will see it as a bargain to add that service for the rent increase. It sweetens the pot a little. They are good long term tenants, so I'm trying to work with them.
You do not "need" them to sign a new lease, however we do a new one each time as a best practice, in order to address things like the due date etc. In Texas there is no limit on the rent increase, and you cannot increase the rent during the term of the lease. You are required to give whatever advanced notice is required by your lease, but not less than 30 days before the next rent payment is due. I'm an Investor, Broker, Property manager in Texas.