The time has come for your tenants to start renewing their leases, which means things can become stressful. As a property manager, it's crucial to keep your properties filled; otherwise, you lose out on income that you depend on to do things like pay bills and other activities.
When tenants come to see you do you know what it takes to negotiate a lease renewal? There's no need to worry. We've provided three tips below to help you learn more about lease enforcement and keep your properties operating at capacity.
1. Have Proper Documentation
The first thing you need to do before entering into lease renewal negotiations with your tenants is to ensure you have the proper documentation. For example, if you plan to increase the rent, you need to have documentation of rising taxes or prices in your area to back up that the rent increase is justified.
You might also increase the rent if you've had past issues with the tenant, which, again, you will need documentation to support your reasons for increasing the rent. When negotiating a lease renewal, you will need to be prepared for your tenants to have their own list of needs to continue living there.
2. Start Negotiations Ahead of Time
It's crucial that you begin your lease renewal process ahead of time and provide your property managers with a timeline to begin these negotiations. The reason you want to start the process ahead of time is so you have time to counter if the tenant has their own demands.
It also provides the tenant ample time to notify you if they intend to move out so that you can find another tenant to move in. Depending on your state, you must notify tenants of the renewal period anywhere from 30-60 days before their move-out or end-of-lease date.
3. Be Prepared For Give and Take
As we've mentioned, tenants might have their own demands needed if they will continue living there. When you're going through lease renewals, you need to be ready for a little bit of give and take.
For example, if you want to increase the rent, you might have to provide some additional property upgrades that justify the increase. It also helps if you offer other incentives for people that renew their leases ahead of their lease end date.
As property managers, it's important to consider your tenants and what they'd want. Then use that to make the most profit from your properties.
It's Time For a Lease Renewal: What You Need to Know?
When it comes to lease renewal, there are a few tips we have to offer you. Ensure you start the process ahead of time and be prepared to negotiate the rental price.
Contact PMI Georgia if you want to continue leveling up as a property manager and making the most of all your rental properties.
