If you are someone who is subletting a property, at one point sooner or later, your lease agreement will expire. When that happens, you and your tenant will have the option to either renew the agreement or you don’t. As a landlord or landlady, you are going to want to renew that contract if you are fortunate enough to have a decent tenant. Here are a couple of renewal letter templates you can use as a guide and send to your tenant.
A template for such a letter that you can give to the tenant for renewing the lease agreement. It is better to have the lease agreement renewed rather than having the tenant move out. Unless you already have a prospected tenant waiting in line to get in, which most do not, you are going to have to put ads again to look for a new tenant. The hassle of starting over again.
A different version of the lease renewal letter, this time for commercial properties. If your tenant’s business is doing good, he or she is going to want to keep staying in that location. So in a way, if the business is good for the tenant, the business is good for the landlord. Though the landlord’s influence on that ended the moment the tenant started leasing. But, in case everything is in good fortune, it is good to have this letter prepared.
Your classic renewal of the lease for a residential property. Although there are many forms of lease agreements, the most common ones are for the residential and commercial tenants. Both these stay longer, depending on the circumstances too, but if a tenant has liked the place early on, most of the time he will end up staying there for a very long time. Sometimes the only reason why a tenant leaves a place he really enjoys staying at is because of a rise in status quo. The bigger the income a man receives, the more he craves for the finer things in life.
An example of a lease renewal letter. Here you can see the intent of the landlord to have the tenant remain leasing in his property. It is universally known that it is better to keep things that way. Unless, of course, your tenant is a delinquent. If that is the unfortunate case for you, it is better and safer if you just end the agreement right there. Considering the long run, if ever something happens to a delinquent person, and he ends up getting caught doing illegal acts in your property, that can damage your prices severely. Properties with history of criminal record tend to have lower prices, as no one will stay in them if they have the means and resources to go elsewhere.
A notice of lease renewal that is constructed in such a way that the tenant will almost feel inclined to agree to the notice. Everything on this notice letter is properly laid out already for your tenant, with him only needing to fill up a couple of spaces, mostly information he should be the one putting down. If you have a tenant who is already decided with living there for a long time anyway, this kind of renewal letter is perfect for him or her.
In this particular lease renewal letter, the landlord has laid out different options that the tenant can use if he wishes to keep on leasing there. He will have the option to keep on leasing on a month-to-month basis, every 6 months, or every year. The longer the span of the term, the lower the total price gets. That is not exactly a very rare strategy, but it has remained to be one of the best bargains a landlord and a tenant can strike. A longer term means more security for the landlord and lower price for the tenant. An ultimate win-win situation.
This lease renewal letter if very straightforward. No tangents, nothing out of business. This is a good letter to send to a tenant if your relationship has mainly been professional. Some tenants and landlords end up becoming acquaintances, even friends. If you have strictly kept your relationship with your tenants professional, this is the letter that may be right for you. Just say what needs to be said, and do what needs to be done.
Owning a property and subletting it is a very good and healthy way of earning a steady stream of income if, as mentioned earlier, your tenant is capable of always paying on time. It is a landlord’s dream to have a tenant who pays on time, has no issues with your unit, and is in it for the long haul. Though that does not happen as often as one might hope, it does still occur from time to time. And when it does, it is good to be prepared and have a letter of lease renewal beforehand.