The best thing landlords in Amelia Island can do is to renew their tenant’s lease. Not only does it minimize vacancies, but it can also improve overall profit.
Many landlords assume that when a lease expires, the tenant will move out and they will have to look for a new one. However, you can avoid this when you provide an enjoyable living situation for your tenant.
When you, as a landlord, make sure the property is well-maintained, communicate with your tenant, and form a friendly relationship with them, you can expect an increase in lease renewals.
Now, you may be wondering how you renew your tenant’s lease in Amelia Island. We’ve created a step-by-step guide to help you with the process.
Benefits of Lease Renewals
Before we jump into the steps you need to take to renew your tenant’s lease, let’s talk about why it’s so important that you emphasize and prioritize lease renewals. It’s one of the few simple things landlords can do to increase their ROI and decrease stress.
Save Money
Don’t underestimate how expensive it is to acquire a new tenant. Between paying to advertise the listing, clean the property, and commissions to realtors, you can spend a few hundred dollars.
These expenses add up, and your ROI can take a toll, especially when you have to acquire a new tenant each year. When you can renew your tenant’s lease, there is hardly any expense. You could even increase your monthly income, but more on that later.
Save Time
One of the most valuable things we have is time. So, why waste it showing your vacant property to potential tenants who may or not decide to lease it?
Traveling back and forth to the property, scheduling showings, and processing applications takes up more time than you may think. Not to mention the time spent cleaning and preparing the property for a new tenant.
Keep a Good Tenant
Good tenants are difficult to find, so if you have a good one in Amelia Island, try to keep them as long as possible. Acquiring a new tenant is always risky because you could invite a problematic tenant into your property and your life.
Plus, you’ll have to spend even more time and money screening new tenants and calling tenant references. This can all be avoided when your current tenant renews their lease!
How to Renew Your Tenant’s Lease in Amelia Island
Hopefully, after reading about the benefits of renewing your tenant’s lease, you’re more excited about starting the process. It’s important to remember, though, that the key to increasing tenant renewals is to provide a satisfying and comfortable experience to them.
1. Notify Tenant of Renewal Option
The first step to renewing your tenant’s lease is to notify them that the lease is up for renewal. You must notify the tenant in writing that you are offering to renew their lease.
The best way to do this is via email or by sending a letter to the property addressed to them. The letter of renewal should include the following information:
- Your name
- The date
- Property address
- Lease termination date
- New lease start date
- New lease term length
- New lease rental price
Be sure to send this letter no later than 90 days before their current lease ends. This gives them time to decide whether or not they would like to renew or negotiate new terms for the renewal. It also allows you to start looking for a new tenant early if they decide to move out.
2. Decide the Terms
A lease renewal doesn’t necessarily mean the tenant must agree to the same terms as the previous lease. In some cases, landlords decrease or increase the rent depending on expenses, the market, and updates made to the property.
The lease could also be month-to-month, six months, a year, or even longer. This is important to discuss with your tenant. Be careful with a month-to-month lease agreement, as it can prove to be unstable and unreliable at times.
3. Draft the New Lease
Once you and your tenant have decided on the terms of the new lease, it’s time to draft it. This shouldn’t take too long since you already have the previous lease.
Simply update the information to reflect the agreed-upon terms and dates. When finished, send it to your tenant to review.
There could also be some more negotiating that takes place at this time and updating the lease again. This is completely normal, but be sure to have everything agreed upon promptly.
4. Sign and Collect Any Additional Deposits
After you’ve sent the lease to your tenant and everything looks good, it’s time for both of you to sign it. This can be done in person or electronically, which proves to be much faster and more convenient.
If you decide to increase the rent for the new lease term, you can then collect the remaining amount of the security deposit your tenant owes you. While you do not have to collect this, it is important to ensure you do have a security deposit of some sort from the tenant.
Do You Have to Renew Your Tenant’s Lease?
Absolutely not! You don’t have to offer to renew your tenant’s lease if you decide it isn’t a good fit or you simply don’t want a tenant in the property anymore.
However, to ensure your tenant moves out, you must send them a written move-out notice at least 90 days before the termination date of their current lease. You don’t have to provide a reason, either.
It’s also a good idea to send another letter, email, or text reminding your tenant that they must move their belongings out and return the keys a month before the lease ends.
Increase Lease Renewals with Cool Realty
Just imagine if you could easily increase your tenant lease renewals with just one simple decision.
We can help you with that!
When you work with Cool Realty, Amelia Island’s leading property management company, you can ensure your tenants will have a comfortable experience leasing your rental. As a full-service property management company, we’ll take care of lease renewals, maintenance, and more.
Contact us to see how we can help boost your tenant lease renewals in Amelia Island today!