As a San Diego landlord, you want to maximize the possibility of a stable passive income. One of the best ways to do this is to have lease renewals.
How much do you know about lease renewals, and what tips can you apply to improve your process? Keep reading to learn everything you need to know on the subject.
What Are Lease Renewals?
Lease renewals refer to the process when a tenant would decide to extend their lease and continue living on your property. Typically, you can offer your tenants the possibility of lease renewals a few months (usually 3 months) before the end of your lease agreement.
The Lease Renewal Process
You can send a lease renewal in the form of a letter, delivered digitally or physically. In the letter, make sure to include the address of the property in question, as well as your tenants' names.
You can go into the detail of when the lease expires, and the offer of renewing the agreement. You can also include the length of the renewed lease agreement, any changes to the rental price, and new conditions that you would like to impose.
Next, make sure to include information about what they should do if they want to renew the lease. You can write the property manager or landlord's contact details, in case they have any questions.
If they decide to go forward with the lease renewal process, you may find it easier to schedule an appointment with the tenant in order to work through the finer details of the new agreement.
Benefits of Lease Renewals
Why is it important for you to offer a lease renewal? There are plenty of benefits that you can receive as a San Diego landlord when your tenants remain with you for a longer period of time.
You Can Maintain Responsible Tenants
If you've been a landlord for a long time, you know how hard it is to find good tenants. This is why, when you've managed to hit the jackpot, you want to retain them as much as possible!
This way, you can rest well knowing that your property is in good hands.
You Avoid Any Turnover Costs
The process of changing tenants can cost you a lot. You will have to market your property again, arrange for cleaning, screen tenants, open inspections, and more. These fees do add up, and you may be losing money when you can simply extend your tenant's lease agreement.
You Have a Steady Source of Income
Renewing lease agreements with your tenants will provide you with a greater sense of stability, as you will have a steady source of income. By renewing their rental agreement for at least another year, you will know that you have that form of passive income locked in.
What a Lease Renewal Can Offer a Landlord
As a landlord, you may be wondering whether lease renewals in San Diego, California are necessary. The truth is, they can be highly beneficial for you! The key is to not fall behind on keeping your property at true market value. Skipping lease renewals can cause your Home to fall seriously below market rent values. The San Diego Rental Market is robust and appreciating at a fast pace. San Diego has also implemented a Rent Cap that may hinder your efforts to getting caught up to the local Rental Market. At Penny Realty, our Property Management service provides for annual rent reviews and lease renewals at no additional expense to our Property Owners.
Contact us for your property management needs.