As a landlord, there are certain formalities and pieces of red tape that you'll have to deal with on a periodical basis. Apartment inspections, tenant screening, and of course lease renewals. If you're a new landlord, you may not have had to deal with the last item on that list yet.
Lease renewals are important because they allow you to keep the tenants you do want while saying goodbye to the not-so-stellar occupants of your properties. But how should you go about a lease renewal? What are some best practices to follow when you're going through the lease renewal process?
This guide will tell you everything you need to know. Read on to find out all about renewing a lease and what this means for you and your tenant.
Getting a Process in Place
It might surprise you to learn that the lease renewal process needs to start long before a tenant's lease is actually up for renewal. In fact, by rights, it should start the day you become a landlord. You need to have a standardized process already in place, so that when the time for renewal actually does roll around, you'll be ready to go.
You should have the documentation already drawn up, and the process already decided upon. This will make sure that the process is as streamlined as possible. You can make a checklist of things to include in the lease renewal process, so you always know you're not missing anything important.
If you don't have the time or inclination to deal with the bureaucracy and time it takes to put a lease renewal process in place, you may consider hiring a rental property management company to take care of this for you.
Talking to Your Tenant
Around 2 months before your tenant's lease is due to expire, you'll need to reach out to them to discuss the lease renewal. If you're planning on renewing their lease, you'll need to make sure that this is something they also want. Once you've confirmed this, you can figure out terms and rates.
Although the state of North Carolina does not require leases to be written to be legally binding, it is always a good idea to make sure everything is documented. This is why it's a good idea to have standard documents for lease renewal prepared ahead of time.
Once you and your tenant have agreed upon the terms of the new lease agreement, you can both sign it to make things official. Before the lease renewal period approaches, make sure there aren't any outstanding documents from any of your properties.
Whether a tenant is intending on staying or leaving your property, it can be a good idea to ask them for feedback. See what they thought about your property, you can use their comments to create a more desirable dwelling for potential tenants in the future.
Fine Tuning Your Lease Renewals
The sooner you begin to tackle your lease renewals, the easier it will be. If you want to make being a landlord even easier, though, we're happy to help. Get in touch with us to see how we can assist you in managing your rental property today.
