Across the United States, the average renter stays in a property for a little more than two years (27.5 months to be exact). If you are a landlord and are currently happy with the tenants you have in your property, you may be keen for them to stay. Likewise, tenants who are satisfied and comfortable living in a rental property may be just as keen to stay put.
A lease renewal agreement is effectively a legal document between a landlord and tenant to extend the latter's stay in a property. In this blog post, we will focus on lease renewals and what landlords in San Diego should consider before offering this option to their tenants. Let's get started.
Renew or Re-List
A high-quality tenant can be described as one who pays the rent on time and without issue, looks after the property as if it were their own, doesn't cause trouble within the building or the neighborhood, and is polite and respectful. The goal of a lease renewal is to keep good tenants who meet these criteria.
On the other hand, if you have a tenant who causes issues, such as frequently paying rent late or disturbing the neighbors, it may make sense to re-list the property rather than offer a renewal. Landlords have this decision to make at the end of a lease, so it's important to take the time to consider whether particular tenants are worth keeping on.
Renewals Save Time and Money
As noted above, lease renewals allow landlords to maintain responsible tenants. Finding high-quality tenants can often feel like hitting the jackpot, so it makes sense to retain them.
Landlords also avoid any costs related to turnover. These include listing a property, arranging for cleaning, screening prospective tenants, and more. What's more, landlords continue to have a steady source of income when there is no break between tenants in their property.
Determining Renewal Length
If a landlord is happy to offer a lease renewal to a tenant, an important consideration is how long they wish to renew the lease. Often, the renewal length is the same as the original lease, for example, 12 months.
In an area where rents are rising rapidly, it may make sense to offer a shorter lease such as month-to-month for six months. The landlord may also wish to offer a tenant a longer lease, depending on the market conditions.
Things to Consider About Lease Renewals in San Diego
In many cases, lease renewals are an excellent option for landlords, especially for those who are happy with their current tenants. The above information will help you to make a correct decision when considering a lease renewal on your property.
If you are looking to partner with a professional San Diego property management company, choose the experts at Income Property Advisor. Contact our team today to learn more about lease renewals in San Diego.