Did you know that apartment inventory is higher between May and September because of the significant turnover of leases and people moving during these months? Regardless of the time of year you move, you should start your search in the middle of the month before you need to move.
As a landlord, when your tenant's lease is up, you want to try to keep them long-term. Keep reading, and we will guide you through what to do when your tenant's lease is up.
Property Management 101
When you manage a rental property, your ultimate goal is to keep it full year-round. You are looking for tenants that are consistent with paying their rent and keeping the place in good condition.
When you find the right tenants, you want to hold on to them for as long as possible. Finding a new tenant can be a long, expensive process that involves marketing your property, going through applications, holding showings, and going through background checks for potential tenants.
You have to go through their current and past employment and check in with past landlords to make sure they are up to date on rent, check out their credit, and more criteria.
We will discuss the steps you should take before and after your tenant's lease.
Keep Tenants Long Term
Before your tenant's lease is up, you should consider the below pros and cons to decide if you want to renew your tenant's lease. It's essential not only to think about what the tenant wants but what's best for your property.
First, we will consider the pros that can apply to many tenants. The pros of keeping your current tenant include:
- Saves time
- Decrease your risk of an empty apartment/house/condo/etc.
- Decreases your risk of a bad tenant moving in
- The tenant is familiar with the lease, payment system, etc.
Now we will go through the cons.
The cons are equally as important. The cons you should look out for include:
- Limits the amount you can raise the rent
- If you don't have a reliable tenant, you should consider finding someone new
- You can take time to renovate and ask for higher rent if you have a space for a bit
If you're looking to raise the rent significantly, you should consider finding new tenants because it will be hard to keep yours around if you increase the rent too much.
After deciding the route you want to take, if you're going to renew your tenant's lease, you should start the conversation 90 days before their lease is up. Ideally, you don't raise their rent significantly and ask for a decision 60 days out.
You should also consider giving them a deadline to sign the lease and keep a lower price, and if they don't, raising the rent slightly and giving them more time to decide.
Renew Your Tenant's Lease
When your tenant's lease is up, you should think through what you want to do and act quickly if you wish to renew their lease.
It would be best to go through the pros and cons of keeping your current tenant and carefully think through what you want to do.
Wolfnest is here to help guide you through property management and pay attention to all the details. Contact us today with questions.