Lease renewal. When to sign, when to cash check.

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Lease renewal. When to sign, when to cash check.

Chintu Kalidindi
Beaverton, OR · Member since 2016 · 2 posts · 0 votes

Hello, I have a newbie question. My tenant's current 1 year lease ends June 30th. We both have mutually agreed to renew their lease with a 1 year upfront payment. When can I ask them to sign the new lease? When can I cash the check? We both trust each other. I am thinking signing and cashing at 30 days before the current lease expires is reasonable. TIA!

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y

Make sure the renewal is signed and agreed to before your state’s minimum required notice. Here in Vegas it’s 45 days. I would send out the renewal now, with an expiration date on the offer. Spell out how much is due with the renewal and that the funds will be deposited upon receipt. 

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  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    I have never heard of 1 year of rent all together but if you have got that deal then I agree with your approach. 30 days before the new lease starts so that you have enough time in case the check doesn't cash. 

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    Make sure the renewal is signed and agreed to before your state’s minimum required notice. Here in Vegas it’s 45 days. I would send out the renewal now, with an expiration date on the offer. Spell out how much is due with the renewal and that the funds will be deposited upon receipt. 

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  • Chintu Kalidindi
    OP
    Beaverton, OR · Member since 2016 · 2 posts · 0 votes
    5y

    Thank you AJ and Bill!

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  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    5y

    30 to 45 days prior to its expiration. 

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  • Casey Powers
    Las Vegas, NV · Member since 2018 · 403 posts · 474 votes
    5y

    If you both have already agreed, then go ahead and get it done now. Sign, pay, put the money in the bank. I would not wait.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I sign within 30 days of the current expiration date. There's no need to sign earlier than that and technically they can cancel the contract prior to it starting, so you're wasting your time with anything earlier.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    I don't know why you'd want 1 year of rent up front or why they agreed to it.  I wouldn't cash it until rent is due.

    As for signing the lease, check your local laws.  It can be 30-90 days.

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