Top 5 Advantages of Starting your Renewals Early
The goal of every property owner is to have a successful rental property. It is important that you have established tenants who pay their leases on time to keep the ball rolling. When you know that it is almost the end of their lease, you have a decision to make. Offering a renewal of your…
The goal of every property owner is to have a successful rental property. It is important that you have established tenants who pay their leases on time to keep the ball rolling. When you know that it is almost the end of their lease, you have a decision to make. Offering a renewal of your tenant’s lease early is actually an advantage as it will save you a lot of time and can secure your cash flow.
Here are the top 5 advantages of planning your renewals early.
More Lead Time
The earlier you know whether a tenant wants to renew or if they want to move out, the more time you have to search for a new tenant. It is always best to check with your tenants from time to time, especially the established ones. Tenants who intend to stay will be glad to renew their lease early, and if they don’t then at least you have time to prepare and search for a new tenant before your current tenant’s lease will expire.
No Vacancy Time
Having downtime is not really good for business as you lose income but still pay for utilities, other expenses or even do a major overhaul to get your property leased again. One way of making sure that there will be no vacancies for a long time is renewing early. Landlords usually get the leases renewed 60 to 90 days before the contract expires. It is actually better to send in a renewal offer to your tenants at least 3 to 4 months ahead of time. This way, you will know whether they intend to stay or not and you can plan ahead of time to avoid any vacancies and your revenue stream will be continuous.
Keep Good Tenants
Having a good relationship with your tenants is beneficial in many ways. Make sure that you build trust and credibility with your tenants. Cater to their every need, fix any repairs immediately and make it easy for them to communicate with you. That way they know they taken cared of properly and they will reciprocate it by taking care of your property too and be a good tenant. If they are happy and contented, they will most likely renew their lease early.
Saves Cost of Finding a New Tenant
Finding a new tenant means a lot of work. You have to list your property again, spend time and money in marketing your listing and you’ll get a downtime since your property is vacant. You will have to go through new tenant applications and screening them thoroughly. That’s why it is easier to sign a new lease early.
Strike a Good Deal
Renewing the lease early is a win-win for both the landlord and the tenant. The landlord gets to keep a good tenant, they are both familiar with the terms and conditions, and a tenant that is renewing early can actually save up on rental fees. Depending on the area, the rental fee can actually increase from time to time, especially if the properties are near Colleges, within the city or places where the weather makes a difference. Renewing their lease early gives the tenant a chance to keep their current rental fees.
If you’re in doubt and still confused about whether you’d like to offer an early renewal with your tenant, give us a call. Green Ocean Property Management can do the work for you. We have a team of dedicated Property Managers who will take care of your property and your tenants. You can consult with us on how you can manage your property better and make the best decisions like starting an early lease. We make every transaction hassle-free. We know what is best for your business and you can entrust your rental property with us.
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