1 Yr Lease is Ending Soon - When to Bring up with tenant?

Question

Hi everyone

I have a tenant I'd like to keep.  Her lease will be up in 2 months.  When is the right time to ask if they are going to sign another lease?  Is there something I should do to let her know we would like to keep her.

She has kept the house extremely clean, if she moves it shouldn't take much to have it move in ready.  Its a small house in a quiet neighborhood that is priced right.

Thanks

Jeff Bridges · Answer

Just wanted to add that there is no need to be nervous about opening dialogue. In addition to above, be sure to point out that you appreciate them being a great tenant and hope that they stay another year, but to notify you at least 30 days before lease expire on her decision on whether to continue staying there. Be sure to send them a copy of the move-in inspection sheet and a move out cleaning checklist like below but tailored to your area so that the move out can be as painless as possible for you and the tenant. If they agree to renew, forward them a copy of the lease.

I don't like discount incentives for lease renewal, but instead note that month to month leases after initial expire will be at a incrementally higher price and that renewing their lease at same or x +3% (whatever you want the increase to be) will allow them to lock in that same or lower rent price than going month to month. This way you control move-out times to good months to the best of your ability and avoid random winter move outs from month to month renters. Tenants will move when they want to, but you can at least try to guide it to be on more desirable months through avoiding month to month lease...

www.petersrentals.net/move_out_guidelines.pdf

Andrea M. · Answer

I typically send out the my lease renewal addendum 30- 60 days prior to the lease end date and follow up within 30 days so that my tenant and myself  have the ample notice.

I also document on the lease renewal addendum a few options

1- not to renew and move out by lease end date

2- renew with no rent increase

3- renew with rent increase

4- month to month with/without increase and 30 days notice

George P. · Answer

Start now. We give them a few options Some with increases and some long term if they keep th current rate

Robert Adams · Answer

I would contact her now since you are about the 60 day mark. Depending on your market you feel her out and see if she is wanting to stay at current terms. If she is not interested maybe you can offer a slightly discounted rental rate to keep her in the porperty. you can also offer a discount for a longer term lease to keep the good tenant in place for longer.

Bill S. · Answer

@Felicia W. you may want to address all these questions in your lease. My lease automatically renews at about a 2.5% increase in rate. Tenant must give notice that they are moving by the 20th of the month before the last month of the lease. ie June 30 end of lease requires notice of non-renewal by May 20th or they have another year of rent. I have an early termination clause as well so if they get into the new lease then want to move they can buy their way out.

Felicia W. · Answer

Although the insurance has gone up on the property, I have decided not to raise the rent if she renews.  If she moves, I will be increasing the rent.  I have no desire to go month by month - I would rather only have to find a new tenant during the summer months.  If the rent was higher in a month to month situation, it might be worth doing.  Last time I allowed it, I had the renter moving out in December which is far from ideal for me.

Account Closed · Answer

If your tenant has been good don't raise the rent if they want to go month to month or renew the lease. If your lease says that the tenant must give a 30-day  notice to move make sure you send your renew notice 60 days before the lease is up.

Joe Gore

Felicia W. · Answer

Thank you for all the input.  I was thinking about offering a discounted month but Jeff Bridges I do like the way to deter month by month situation.

I really like the addendum and the move out guidelines.

Thanks for making this easier.

Mike Jakobczak · Answer

typically in my leases I have a 60 day notice for renewal. This gives me enough notice to start to market the property if the tenant decides they want to leave.

You shouldn't be scared to approach this subject with your tenant. As you are running a business and need to keep your property rented.  It sounds like your tenant is happy and is a great tenant.  If you want you can offer an incentive to renew the yearly lease. I sometimes gives up to half of months rent. This is usually a drop in the bucket as the expense to find a new tenant and vacancy adds up fast.

1 Yr Lease is Ending Soon - When to Bring up with tenant?

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