My Tenant's Anniversary is Approaching....

6 Replies

Great morning BP Fam,

Tenant's lease is up in March '18. How early are you sending out renewal/anniversary (Mr. Landlord terms) letters? I am planning to send out letter in January.

Thanks!

@Eric H.

What does the local tenancy law require?

Here, if a tenant were on an annual lease, notice - from either landlord or tenant - with respect to renewal must occur on, or before, the day rent is due three months in advance of the anniversary.  If the anniversary is April 01 {current lease ends on March 31}, then notice would be provided on, or before, January 01.

Eric,

You really have to check your laws landlord tenant laws, it should specify how long before their anniversary date the notice can be sent. I also send both by snail mail and email so that I know that they received. Make sure to keep copies of everything.

I send out notice 90 days in advance. I remind them of their lease expiration date and offer them three options:

1. Vacate no later than their termination date;

2. Renew for a year; or

3. Convert to month-to-month at a rate of $XXXX

Depending on the time of year, converting to a month-to-month lease may require a significant rent increase, usually 25%. This is to help mitigate the risk of vacancy during winter months where it's hard to find new tenants.

I remind tenants again at the 60-day point.

If they have not given me a response - in writing - 30 days prior, then I send them notice that their lease will terminate on the scheduled date and that we are starting to advertise the unit for potential renters. I also send them move-out instructions. This doesn't happen very often because most tenants make their decision well in advance.

Make sure you also include your annual rent increase information in the renewal notice. It is usually the rent increase notice that will determine the  date you need to send the notice.

I would offer them a auto renew M2M lease at the new higher rent rate. If they are a good tenants they should have no problems with a M2M.  Tenants will not normally move in the winter and will only do so when life issues necessitate it regardless of a lease. Go with a M2M to allow you maximum control over your investment.

Because I have no auto-renewal provision in my leases, my law has no requirements about renewal notices.  Thus, I informally (via text) contact my clients about 60 days in advance of the lease termination about whether they want to renew or terminate and then send the letters out immediately after hearing from them.  They've always chosen to stay at all my properties so I give them a deadline to return the new lease and we are good to go.

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