Your lease agreement is the most important document governing the relationship with your tenant. In your lease, you’ll spell out all of your responsibilities and expectations for the tenancy. Usually, a lease agreement covers the term of one year. When the lease is nearly up, it’s time to decide whether the tenant you have in place will renew or move out.
At Realty Group of Southwest Florida, we follow a detailed process when it’s time to consider a tenant’s lease renewal. Our renewal rate is high, thanks to our quick response to tenant issues and concerns. It’s important to remember that keeping a good tenant in place is important. It reduces your turnover and vacancy costs, and increases your ROI.
Timeline for Lease Renewals or Notices to Vacate
Your lease should indicate how much notice a tenant needs to give before vacating or renewing the lease. We have a 60-day requirement. This means that if a tenant plans to move out, he or she needs to notify us in writing 60 days ahead of the end of the lease. If they decide they want to renew, we will take care of drafting the new lease. If there’s lease renewal paperwork required by the HOA or community association, we’ll manage that process as well.
If the tenant is planning to leave the property, we immediately begin the marketing process. When we start marketing the home as soon as the tenant provides us with the 60-day notice, we can ensure that the turnover period is minimized. Once the tenant vacates, we’ll immediately clean the property and make any necessary repairs, and our goal is to get a new tenant moved in after just a few days. Reducing and avoiding vacancy is our priority.
Conducting a Walk-Through Lease Renewal Inspection
Before agreeing to a lease renewal, it’s a good idea to make sure your tenants are taking good care of the property. We perform a full walk-through and inspection. This is our opportunity to check for any deferred maintenance issues or unreported repairs. It also allows us to ensure the tenants are following the terms of the lease. If they’re taking good care of the home, we will certainly want them to stay in place for another year.
Rental Increases during Lease Renewals
Evaluate the rental market and decide if a rent increase is warranted. We suggest you get help from a property manager so you have reliable data on the average rental rates for homes like yours in your neighborhood. We will take a look at market rents and make recommendations to our owners about whether rent should be increased and if so, by how much. Most tenants expect a rent increase during a lease renewal period, but you don’t want to chase away a great tenant with an increase that’s too high.
Retaining good tenants is an important part of your investment strategy. If you’d like further advice about lease renewals, we’d love to talk to you more about this topic. Please contact us at Realty Group Southwest Florida for any property management information.