Have you decided to renew your lease with your tenant? If the answer is yes, congratulations—you have made a wise decision! Maintaining a good relationship with your tenant is essential, and renewing their lease is a great way to show that you appreciate them as a tenant. Plus, it can save you time and money by avoiding placing the rental property back on the market.
That said, you should keep a few things in mind when renewing a lease with your tenant. This blog post will share five tips to help the process go smoothly. Read on to learn more!
In this article, you will learn these five tips for renewing a lease:
Review the current lease agreement
Before beginning the renewal process, reviewing the current lease agreement is essential. Reviewing the current lease will give you an idea of what needs to be changed or updated. For example, you may have to update the lease to add or remove utility costs or the internet. You may have had issues with the tenant and need to make updates to enforce rules, like rental payment grace periods or late fees.
Review what's going on in the rental market in your area
It's essential to stay up-to-date on the rental market before renewing a lease with your tenant. With increasing competition and ever-changing rates, ensuring you're getting the best value for your property is crucial.
Give notice to the tenant
After you've reviewed the current lease and rental market, the next thing to do is to give them notice. This will allow them time to prepare for the change and show that you respect their time. I recommend giving 60 to 90 days' notice to your tenants. In Miami, if landlords are going to raise the rent by 5% or more, they have to give the tenant at least 60-day notice.
The notice should be delivered to the tenant by certified mail or in person and should include the following:
The New proposed rent price
Lease terms available
Any changes that will be made on the new lease
Option for month-to-month lease (if applicable)
Example of lease renewal template
Negotiate in good faith
When negotiating the new lease terms, it is essential to do so in good faith, without trying to take advantage of your tenant. After all, you want to maintain a good and professional relationship with your tenant! Try to be reasonable and fair in your negotiations so both parties can come away happy with the outcome.
Deliver and sign the new lease
After you and your tenant have agreed to renew the lease, it's time to send them the new lease and sign it. If you hired a real estate agent when you listed the property, they might assist you by sending you and your tenant an updated lease to sign digitally. If you manage everything yourself, you must prepare the lease and send it to the tenant to review and sign.
Conclusion
That's all there is to it! By following these four tips, you can rest assured that renewing your lease with your tenant will be a breeze—and that your relationship will stay strong for years to come. Thanks for reading!
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