Tip of the Month - February 2011

Renewing Leases

Source: Property Management for Dummies
              By Robert Griswold

Lease renewals are a sign that you are doing a good job at keeping your Tenants satisfied and meeting their needs, not to mention the fact that they are one of your most productive activities as a rental property manager. Of course, not all Tenants are good candidates for lease renewal, but renewing a lease with a current Tenant clearly has an additional benefit over a lease with a new Tenant.  After all, you have a track record with your current Tenant: you know the rent payment history and whether the property and neighbors are treated with respect.  And you can never be 100 percent sure of that kind of information when you are starting from scratch with someone new.

Plus your Tenants know what to expect from you as a rental property owner.  They know your standards for maintaining the property, your interest in and response to requests, your policies and rules (and whether they are fairly enforced), and the level of courtesy and respect you have for their privacy.  Your Tenant has a certain comfort level with you, and as long as you are willing to be competitive with your rental rate, it is in their best interests to stay.

Unless your lease agreement contains an automatic renewal clause, it will expire on the date specified.  If you want your Tenant to stay, do not be afraid to approach them and ask them to sign another lease effective when the current one expires.  Contact your Tenant at least 60 days prior to the lease expiration.


Tip from Crossett Real Estate Services

In reviewing lease renewals, we schedule an appointment to discuss and update: any changes on employment and/or source of income/vehicle/family and/or health.



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This web page was updated on 02/02/2011.