In 2022's rental market, roughly two-thirds of renters renewed their leases when they were ending. One reason for this is the high occupancy rate in other apartments.
On top of that, it was difficult for renters to find new places to live that were comparable to their current accommodations.
People generally want to stay where their stuff is and with leases that work for their specific needs. As a landlord, it's important to understand how lease renewals work and how both parties can benefit from any changes.
Here's how to manage renewed rental leases in Blue Springs.
Review the Current Lease Terms
Your very first step should be to double-check the current lease you have with your renter.
Make sure that there aren't any issues with it that your tenant could find upon further inspection. Some key areas to look at include how late fees are handled, maintenance and repair responsibilities, and occupancy limits.
This is also when you'll decide if there are any areas you may want to change. Keep in mind that your tenant does not have to agree with them, so you'll want to be careful if you want them to renew the lease.
Evaluate the Tenant's Rental History
At the same time, landlords should check their tenant's rental history and how well they've complied with the last lease's terms. Assess their behavior as a tenant. You can also decide to adjust the terms of the lease accordingly.
If you do not wish to renew their lease, you may need to consider giving them an eviction notice.
Prepare the Renewal Offer
Once you've renewed the tenant's history and done a bit of market research, you can decide on the renewal offer. This often includes a slight increase in rent and updates to lease terms.
If you're changing anything to do with maintenance or utilities, this is also where you'll notify the tenant. You should also make sure any modifications are legal and comply with local regulations.
The easier you make this process, the more likely tenants are to stay.
Negotiate Terms With the Tenant
Lastly, your tenant may want to negotiate the terms of the lease. They might have concerns about new terms or request minor changes.
It's important that you stay open to their suggestions if you want to avoid making another rental listing.
For example, tenants may want to take on some maintenance tasks themselves. Alternatively, they could prefer the landlord to take on more responsibility.
Manage Lease Renewals Better
Lease renewals should always comply with local housing laws and be done with your tenant's permission.
If you try to push a new lease onto them without talking to them first, they are more likely to leave for a different apartment. However, you should also know when to cut your losses and find a new renter for your investment.
PMI KC Metro provides property management services in the Blue Springs area. We're part of a growing franchise with nearly 20 years of experience.
Contact us today if you need help with your commercial or residential property.
