How does everyone do the renewal term in their lease? I changed mine because of auto renewal, to many times tenant would blow me off before the lease ends on the renewal term so I cant change anything since they wont sign a new lease and it auto renews.
This is what I currently have in my new lease, can anyone tell me if this is good or it bad. Any downside they if they dont sign a new lease they are living their without a expired lease?
7. RENEWAL TERM
This lease will NEVER automatically renew.Once the starting and ending dates are expired this lease will be void.
a. If TENANTS are moving they must give LANDLORD 30 day’s written notice before the end of the lease.
b. If LANDLORD wants the premises back LANDLORD must give 30 day’s written notice before the end of the lease.
c. if TENANT gives LANDLORD 30 days written notice before the end of thelease or LANDLORD gives TENANT 30 days written notice, LANDLORD has the right to put a “for rent sign” in the window or in the yard and show the property to potential future tenant’s inside and out. LANDLORD must notify current TENANT'S before future showings..
My lease renews automatically to a Month to Month lease upon expiration, mandatory in Arizona however... I send out a lease renewal offer 60 days prior that gives them choices. They can renew for another 12 months at the same price or they can renew for 6 months with a 5% increase or they can go month to month with a 10% increase. Now when it rolls over automatically I automatically raise the rent 10%.
@Dick Rosen I like that idea you have with raising the rent based on what term they want after the 1st year.
You ever get pushback on that?
I put a holdover clause in mine. If they fail to notify me whether they will stay or leave, and sign a new lease, then they are in holdover and the rent automatically goes month to month and increases. I usually send a reminder, like Dick does, about 60 days prior.
I've never had any complaints. Most renew for 12 months but I have students in transition who will take the 6 month option and I have some that are looking for a move so they month to month and they all understand the increased rate and appreciate no increase for a new 12 month term. I have also adjusted those numbers for people I wanted out.
So, you don't ever raise the rent on them if they sign another 12 months? Or, at what point do you?
Here is the clause in my lease. 12 month self renewing. I always call the tenants prior to the 30 days and ask them their intentions for the next year.
Upon expiration, this Agreement shall be self-renewing for additional period of twelve (12) months, UNLESS either Tenants or Owners notify the other party in writing at least thirty (30) days prior to expiration that they do not wish this Agreement to continue on any basis. Initialing here verifies that the Tenant understands this paragraph.
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