Did you know that the number of renters in San Diego has grown twice as fast as the number of homeowners, setting a new record?
There are more potential tenants in the city than ever before. This is great news for people who have one or more rental properties. Aside from finding tenants, one of the biggest steps in the rental process involves renewing the lease. You may think it's good to renew it right away, but it's best not to be hasty.
Keep reading to learn about what you should consider before renewing your tenant's leasing contract.
What Is Their Behavior Like?
While it's important to keep properties filled with paying tenants, sometimes it's not worth renewing a lease for specific tenants. This is especially true if they often don't pay on time or at all.
Aside from their payment behavior, it's also worth taking their general behavior into account. Are they rowdy and receive regular complaints from the other tenants? Do you think they're up to illegal activity such as illicit drug use?
In these situations, it may be best to let the tenant lease expire and have them move out. Eviction may even be necessary. The good news is that a property management company can handle all of this paperwork for you while also staying true to the various laws and regulations in your area.
Is It Time to Raise the Rent?
Another thing you should consider before a lease renewal is the cost of your rent. If you've renovated your properties and added more amenities, for instance, then you're well within your right to raise the rent. Just be sure there are no laws against raising your rent beyond a certain threshold.
Even if you haven't invested in renovations, there's always inflation to take into account. By not raising the rent after inflation, you could end up making less and less on your rental property.
Did You Send the New Contract in Time?
A property management company can also make sure that you send any new lease out to a tenant in time. There are rules and regulations in place so that tenants can have a reasonable window of opportunity to read over the lease in full before they decide to renew it, too.
If you break this regulation, you could end up in legal trouble. This is why you should always maintain a rigid timeframe.
Ready to Renew the Leasing Contract?
Now that you've learned all about what you should consider before renewing your tenant's leasing contract, you can make sure that everything goes as smoothly as possible. That way, you can hang on to your well-behaved tenants for a long time to come.
Income is ready and willing to help you with all aspects of managing your properties, including residential to multifamily properties. From calculating return on investment to finding and vetting tenants, you can always count on our expertise.
For more information, be sure to contact us as soon as you can.
