When you own investment properties, it can be challenging to keep them consistently occupied. In the United States, the vacancy rate in Q4 of 2020 was 5.5%.
When you have reliable tenants, taking the necessary measures to retain them in your rental property is crucial. Finding great tenants who care for your property as if it were their own can be challenging.
This is why staying proactive with your lease renewals is so essential. Neglecting them may lead your tenants to seek alternative living arrangements and lost revenue for you.
This article covers some tips on handling lease renewals like a pro, so keep reading to learn more.
Tip #1: Start Early
As a San Deigo landlord, the first thing you want to do when handling lease renewals is to start early. This means sending reminders that the lease is ending, allowing your tenants to renew in time.
It is essential to start early because it gives you time to prepare for the possibility that your tenant may not want to continue living in your rental. If you wait until the last minute, you may not have enough time to find a new tenant and will lose money.
Send reminders to your tenants at least 60 days before their lease ends. Include all the vital information about the lease renewal, such as the new rent amount, the lease length, and any changes to the lease terms.
Tip #2: Conduct an Inspection
Inspecting the property before offering them a lease renewal is worthwhile to know whether or not you want your tenant to renew. If they've taken poor care of your investment property, it might be wise to proceed with the eviction process instead.
However, if you conduct an inspection and everything is up to par, you can confidently proceed with the lease renewal process. Here are some things to look for during an inspection:
- Is the property clean and free of damage?
- Are all of the appliances working?
- Is the property being used for the intended purpose?
If you find any problems during the inspection, discuss them with the tenant and ensure they are addressed before renewing the lease.
Tip #3: Use a Property Manager
Finally, if you want to avoid having the responsibility of remembering when lease renewals are coming up, it's wise to invest in the services of a property management company. They will take the responsibilities of managing your investment properties off your hands. They will send out lease renewal reminders, organize and conduct inspections, and find new tenants if your current ones choose not to renew.
Get On Top of Your Lease Renewals
Handling lease renewals like a pro is essential for landlords wanting to keep their properties occupied. By following the tips above, landlords can make renewing leases as smooth and stress-free as possible for themselves and their tenants. This can help ensure that properties remain occupied, essential for generating income and maintaining a positive cash flow.
Let us take the burden off your shoulders. Contact us at McLain Properties and let our experts manage your San Diego investment properties. We have expert property managers waiting to help.