Updating a year lease letter
Finding a new tenant can be a time-consuming and costly process that involves marketing the property, sorting through applications, showing the unit, and screening potential renters.
The longer it takes to find a new tenant, the more expensive the process becomes.
You also won’t need to give the property a major overhaul, unless you agree to during lease negotiations.
Not only do you secure your cash flow and save money when you renew a lease, but you save time as well.
Then you have more time to get the ball rolling on advertising and searching for a new tenant.
According to Rent Prep, you should create a new lease with appropriate changes to the rent and lease terms as appropriate.
If you’re wondering whether or not to renew a current lease, check out our list of pros and cons and our tips on how to handle lease renewals.
Lost rent is especially significant when you rely on rental income to pay the mortgage.
When it comes to negotiating, your best bet is to do your research first.
Use a fair market rent calculator and check similar properties in your area to see whether or not you should adjust your rent price.
Even in areas not governed by rent control laws, if you raise the rent too high, you risk losing a stable tenant.
Before raising the rent on a tenant that you want to keep, you should factor in the money you’ll save on tenant turnover.