Lease renewal -- how do you prevent nearing the end of the lease?

[Maria G.]

Hello,

I would like to know what others do when it's time for a lease renewal. When you inform your tenants of the new terms (presumably 30-60 days in advance), how much time do you give them to think about it? How do you proceed if they do not agree to the new terms? Do you immediately serve them a "notice to vacate"? 

I want to give them a reasonable amount of time to think about it, while not falling in a situation where I near the end of the term because that would mean that a "notice to vacate" would essentially add 30 days to my desired lease-end date, which I avoid because the property is located in a very sought-out school district, so right before the summer is when most of the movement happens.

Thanks.

[Brandon Rush]

Quote from @Maria G.:

Hello,

I would like to know what others do when it's time for a lease renewal. When you inform your tenants of the new terms (presumably 30-60 days in advance), how much time do you give them to think about it? How do you proceed if they do not agree to the new terms? Do you immediately serve them a "notice to vacate"? 

I want to give them a reasonable amount of time to think about it, while not falling in a situation where I near the end of the term because that would mean that a "notice to vacate" would essentially add 30 days to my desired lease-end date, which I avoid because the property is located in a very sought-out school district, so right before the summer is when most of the movement happens.

Thanks.

 Hey Maria,

I actually send out a notice of rent increase and lease renewal 60 days prior to their lease ending. This notice basically tells the tenant how much the rent is going up and gives them the option to accept the rent increase or deny the rent increase and specify the day they will be moving out, prior to the lease end date. It also specifies that failure to sign this notice before a certain date (usually 30 days before their lease expiration), will result in a notice to vacate being sent. If they agree to the rent increase, I simply send them a lease renewal document to sign. If they state they will be leaving, I would still send them a formal notice to vacate. I would recommend you putting these dates in your calendar as reminders so you do not forget.

I hope that was helpful and good luck!

[Terrell Garren]

Never deal with it.  M2M rental agreements all day long. Best thing I've learned in 14 year school of hard knocks. 

[Theresa Harris]

It depends where you live and the rules.  For one area, I have to give 90 days' notice for rent increases, so I talk to them about 4 months before their lease is up and let them know what the new rent will be and I follow that up in writing.  Other than the dates and rent, I don't change the other terms of the lease.  If your area requires 30 day's notice, I'd do it 60 days and give them that month to decide.

I do 1 year leases for all of my properties because in one area (BC) trying to get rid of a tenant who is month to month is almost impossible.

[Nathan Gesner]

@Maria G. the laws are different in some states. I usually contact the tenant 60 days prior to termination and remind them of the termination date or offer them the terms for a renewal. If I offer a renewal and they accept it, I typically want the renewal contract signed 30 days prior to the current lease ending. This gives me plenty of flexibility if something happens.

[Ron H.]

I do 1 year lease then go month to month for the duration.   I give notice of rent increases 2 weeks before required notification period specified in lease.  Notice is actually a lease amendment where tenant has to sign whether they accept new lease or that they will be moving out on lease end date.  I'd anyone doesn't sign this then I would send out notice of lease ending and move out date.