How do you manage lease renewals and terminations?

1 Review lease terms

The first step in managing lease renewals and terminations is to review the lease terms and conditions with your tenants. You should do this at least 60 days before the lease expires, or earlier if the lease allows for early termination or renewal options. Make sure you and your tenants understand the notice period, the rent increase, the security deposit, and any other clauses that may affect the renewal or termination process.

2 Negotiate lease renewal

The next step is to negotiate the lease renewal with your tenants. You should consider the market conditions, the tenant's satisfaction, and the property's condition when deciding whether to offer a renewal or not. If you want to keep your tenants, you should provide them with a fair and competitive rent increase, and highlight the benefits of staying in your property. You should also be flexible and open to any requests or concerns they may have. If you do not want to renew the lease, you should explain your reasons politely and professionally, and follow the lease terms for ending the tenancy.

3 Prepare lease termination

The third step is to prepare the lease termination with your tenants. You should do this in writing, following the lease terms and the local laws. You should also inspect the property and document its condition, and inform your tenants of their responsibilities for cleaning, repairing, and returning the keys. You should also arrange for the final walkthrough, the security deposit refund, and the forwarding address. You should also thank your tenants for their stay and wish them well.

4 Market vacant property

The fourth step is to market the vacant property to find new tenants. You should do this as soon as possible, to avoid losing income and attracting vandalism. You should advertise your property on various platforms, such as online listings, social media, flyers, and referrals. You should also prepare your property for showings, by cleaning, repairing, and staging it. You should also screen potential tenants, by checking their credit, income, references, and background.

5 Sign new lease

The fifth step is to sign the new lease with your new tenants. You should do this after you have verified their qualifications and agreed on the lease terms. You should use a standard lease agreement that complies with the local laws and regulations, and customize it to suit your property and preferences. You should also review the lease with your tenants, and make sure they understand their rights and obligations. You should also collect the first month's rent, the security deposit, and any other fees or charges.

6 Maintain tenant relationship

The sixth and final step is to maintain a good relationship with your tenants throughout the lease period. You should do this by providing them with quality service, responding to their requests and complaints promptly, respecting their privacy and property, and enforcing the lease rules fairly. You should also communicate with them regularly, and update them on any changes or issues that may affect their tenancy. By doing this, you will increase your tenant retention, reduce your turnover, and enhance your reputation as a property manager.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?