Lease Renewal Timeline
Hi, this is Eddie with Access Property Management. Today we are talking about lease renewals. There are many aspects of the lease renewal process. On paper it seems easy, but there is a lot of communication that we go through to try to get that tenant to renew their lease and sign on for another year or two.
90 Days From End of Lease-Send A Notice (or Several)
The process starts about 90 days out. We send a minimum of 6 emails at that time. The emails are automatic and they go out the first of every month. From there, the reply that we get from the tenants is either yes we want to stay or no we don’t.
Not Renewing The Lease
If it’s a no, we send a Termination of Tenancy along with the move-out checklist, which covers everything they need to do including turning in the keys and giving us a forwarding address before they move out.
Renewing The Lease-Check with Owner
If the tenant says yes, we kind of hold the process with them right there. We then move on to check with the owner. Does the owner want to renew or maybe there are going to sell their home.
To Raise Rent or Not to Raise Rent? That is the Question
If the owner says yes, we will talk about a rental rate adjustment. The big thing to remember about rental rate adjustment is, “Are we going to raise the rent so much that we are going to lose that tenant and they move out?” And now we have a $1,000 or $2,000 turnover because the home hasn’t been painted in a couple of years or the carpet needs to be replaced. We want to make sure that if we do raise the rent, then we are definitely going to get that tenant to stay there. If not, we don’t want to lose a tenant over five or ten dollars a month. Over the course of a year, $120 isn’t worth losing a tenant for.
Sign The New Lease
So if the owner says yes, we talk about rental rate adjustment. From there we go back and confirm with the tenant to make sure they want to stay and after that we email out a lease. We do everything via DocuSign so that they can sign it online from their computer, their iPad or phone.
Copies, Copies For Everyone
After we get that back we then put that lease into our owners’ portals so that they can have a copy of it. The tenant also gets a copy. From there the tenant is signed up for another year and we keep on collecting rent. This is how we work our lease renewal process.
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