Did you know that almost 35% of people in Florida rent instead of owning their living spaces?
That's a significant amount of potential income for people who own rental properties. The main legal bond between landlords and tenants is rental leases. Without this binding document, things can become hazy and complicated quite quickly.
This is why it's essential to renew leases when the time comes. Are you wondering what the process is like? Keep reading to learn all about lease renewals with this landlord's guide.
When Is Lease Renewing Necessary?
When it comes to tenant leases, you shouldn't offer renewals for just anyone. The last thing you'd want to do is have a problematic tenant for another three months or even another year. It's best to allow these tenants to move on after the lease is up or evict them if necessary.
After your property management company in Southwest Florida has screened tenants to ensure that they're worth keeping, you should send renewal notices for tenant leases. The sooner, the better. Most landlords send out renewals within 3 months of the original lease's expiration.
So that your tenant has enough time to decide and complete the paperwork, it's best to avoid sending it last minute. You should give them at least a month's notice.
Changes to Property Leases
The renewal of tenant leases is a great opportunity to make changes if necessary. For instance, you can raise the rent to keep up with your competitors or to pay off recent upgrades to the property.
You'll need to provide a tenant with a separate notice informing them of the rent increase. Both parties will have to sign this document to avoid any legal trouble. This prevents landlords from trying to sneak in a higher rent without the tenant realizing it.
You can also offer the option of different lease lengths. It's possible that a tenant who was paying every month or every 3 months would like to sign a lease of a year or even two years.
It's common to charge a higher rent for a shorter lease period. Since it costs both time and money to find new tenants for a vacancy, month-to-month leases are often the most expensive option. The benefit a tenant gets from this is the ability to move to a new place without having to wait a whole year for the lease to expire.
Are You Ready to Handle Lease Renewals?
Now that you've learned all about lease renewals with this landlord's guide, you can tackle this responsibility with speed and efficiency. Even the easiest tasks might snowball into something that feels insurmountable. That's why it's important to have a reliable property management company to handle these responsibilities on your behalf.
Gulf Coast Property Management is proud to serve the majority of Southwest Florida, including Lakewood Ranch, Bradenton, Venice, and Sarasota. From tenant screening to maintenance, you can always rely on us.
If you have questions about our attentive services, feel free to reach out to us.