Did you know that Salt Lake City is facing the tightest rental market in its history? With a vacancy rate that’s below 2%, the average rent for a two-bedroom apartment is about $1,700.
If you are a landlord in Utah’s capital, it’s a great time to reevaluate your lease enforcement and property management needs. With demand higher than ever, streamlined lease renewals can save you time and money in the long term.
There are a number of different approaches to leasing management. Keep reading to learn more about the best approach for your properties.
Benefits of Lease Renewals
Renewing the lease of an existing tenant involves drafting new rules, terms, and conditions. Generally speaking, it’s also an opportunity to increase the rent by any amount.
If you have a good tenant, it can often be in your best interest to keep them. Tenant turnover usually costs between $1,000 to $5,000. When a tenant moves out, you have to:
- Repair damages, clean the unit, and perform needed maintenance
- Offer tours to multiple prospects
- Screen and process applicants
- Wait for the new tenant to start paying rent
Renewing more leases helps your bottom line as a property owner and manager. To avoid the hassle of coordinating a lease renewal or searching for the next best tenant, it’s a great idea to partner with a local property management company.
Ensure More Lease Renewals
Treating your tenants right is the best way to ensure good tenants renew. To get more lease renewals, invest in a seamless process.
Communication and responsiveness are key. Send residents a renewal notice in advance and offer to answer any questions. Having a digital process for sending and signing documents is also preferred for most renters.
While Utah’s market is tight, it also pays to be smart about rent increases. Thoughtful increases reduce the chance of backlash and your tenant leaving.
Steps to Renewing a Lease
Before you set a renewal in motion, evaluate whether your current tenant pays rent on time, takes care of the property, and respects their neighbors. It’s a good idea to create a lawyer-reviewed lease agreement that adheres to Utah’s state laws.
Lease renewal best practices recommend:
- Asking for renewal 90 days before the lease expires
- Sending a thorough lease renewal letter that serves as a formal notice and documents the timeframe and any proposed rent increase
- Drafting a new lease that’s clear and detailed
- Securing the tenant's signature
How to Invest in the Resident Experience
As a property owner, investing in your resident's housing experience will save you time, money, and peace of mind. To keep your best tenants, lease renewals should be straightforward and easy.
Today is a great day to start thinking about how you can streamline your landlord responsibilities. Wolfnest specializes in a unique approach to property management. We are experts in serving professional, new, accidental, and DIY landlords in Salt Lake City, Utah.
Contact us today to learn how we can put over 10 years of local experience to work for you.