Is There a Good Way to Renew Leases?

Question

Does Anyone Have a Good Way to Renew Leases?

Scott M. · Answer

Assuming you are the owner of the property then you are in the drivers seat here.  About 90 days out you should start to put your own thoughts together about what you want to do.  is it time to sell?  If so, that will guide you down one path.  If you want to renew, that will guide you down another path.  But it all starts with you, the owner, deciding on what fits into your personal goals and objectives.  If this is your clients home then you ask them.  Good to have your thoughts (or the owners) thoughts in place before you talk to the tenant.  About 60 days out start conversations with the tenants to see what their preference is.  This leaves plenty of time for decisions and inspections to be made.  30 Days out everyone should know what the deal is. Might be good reason to stay on month to month, or sign a new lease, or initiate your move-out process.  Where most people find themselves in a jam is starting to late.

Dennis Seeman · Answer

@Steve Rozenberg thank you for the insights. In what cases would you order new credit / background check, assuming that you would not offer renewal to someone who was a slow payout.

JR T. · Answer

Sixty days out we send an option letter 60 days prior to expiration giving rates for a 12 month, 6 month and month-to-month renewal. Obviously the rents get very high on the month-to-month option. Tenant must sign a new lease and provide an update COI to avoid holdover rent at 150% of last month's lease rental rate.

Steve Rozenberg · Answer

thanks @Rob Beland

We have been trying to streamline our system on a large scalable version. 90 days out we do a 3rd party inspection to see how they are treating the home and that report is our determination whether we want to renew their lease. If we are then we send them a full new lease just to make sure they are current under current laws unless some have changed

If we get their 60 day notice to vacate we send them the video of the home we took upon move in and let them know that this is how we expect the home returned to us or charges they acknowledged at lease signing will be charged

Rob Beland · Answer

I just send them a one-two page addendum if I'm going to renew on the same terms. Most of my tenants are TAW so there is no renewal. The only renewals I do are on SFRs. the addendum basically says all terms are the same except that rent is increasing and it has some acknowledgement of the security deposit. Don't overthink things like this @Steve Rozenberg. You could also very easily mail them a new lease for signature.