Renewing a tenant's lease costs a landlord much less than finding a new tenant. For this reason, and many others, lease renewals are essential components of a property investor's strategy. With so much competition for housing throughout the Charlotte, NC area, keeping renters happy and willing to renew their lease year after year is of the utmost importance.

If you are beginning to invest in property or don't have extensive property management experience, you might not be aware of the various details of lease renewals. Read on and learn the essentials.  

How Do I Offer Lease Renewals to Tenants?

You can ask a tenant if they want to renew their lease. You can request through an email or with a letter. Each state has specific requirements related to leasing renewals, so check your local laws and regulations. 

Your lease renewal notice should include the property address and the tenant's name, along with your name and contact information. It will also have the expiration date of the current lease and the term of the new lease if they decide to renew it. If there are any changes to the amount of rent, include that as well. 

It is customary to send a tenant a lease renewal offer within 90 days of the current lease end date. This gives renters the required 60 days' notice of non-renewal. 

For guidance on how to negotiate a lease renewal in your favor, check out these 4 helpful hints. https://carolinaspropertymanagement.com/blog/4-tips-for-successfully-negotiating-lease-renewals 

Can a Lease Renew Automatically?

In some cases, yes. In the state of North Carolina, the lease statute allows a property owner to include an automatic renewal clause in the lease. If neither the landlord nor renter issues a notice to terminate a lease, it can be converted into a month-to-month arrangement under North Carolina provisions.

If you're a landlord and want to know more about lease renewals, click here.

When Shouldn't I Renew a Lease?

Keeping a tenant is more cost-effective than looking for a new one, but it might be better not to renew a lease in some cases. If you have a renter who causes frequent problems, damages your property, or pays their rent late each month, they might be better off somewhere else.

If you decide not to renew a lease, make sure you provide proper notice. Send a lease termination letter to the tenant at least 90 days before the end of the lease. Include details on how and when to vacate the premises.

Real estate and rental laws vary by state, so check with your local public housing authority for your termination notice's appropriate language and format.

To Renew or Not Renew

When you invest in real estate to rent to tenants, there are a lot of details you have to consider. One of them is lease renewals. In most cases, renewing a tenant's lease is preferable to seeking a new renter. 

Follow the laws in your state to provide a lease renewal letter. If you decide it's time to part ways with a problem tenant, take steps to terminate the lease at the end of its term.

If you have questions about how to manage properties and keep tenants happy, contact us today.