Set leases to auto renew?

[Nick M.]

Hi team BP!

I'm writing seeking advice on structuring lease renewals.

Though my current lease says asks for 60 days renewal/non renewal notice, I've found tenants seldom reach out.  Therefore 75 days before a lease expires I send out a renewal notice asking residents return it within 2 weeks indicating whether they want to renew.  This is done every year.  I rarely get a letter back in 2 weeks. Ultimately when I do receive a renewal letter returned, most do extend their stay - but there are always those handful who send it back 3 weeks before lrease expiration saying they are moving out.

Wondering if anyone has experimented with auto renewals and if so, in what way?  The downside to sending renewals each year is you instigate the tenant to think about other living options.  Cable, phone, Amazon, etc just auto renew - perhaps reducing churn.

Thoughts?

[Greg Scott]

For those tenants that send back notices 3 weeks before they move out, hopefully you are charging them rent for the next 2 months as allowed by your lease.  If so, good for you.  You have 5 weeks to find a new tenant while rent is paid for by the previous tenant.

Regarding auto-renew, I'd check with a local real estate attorney.  There may be local laws preventing such clauses.