Rental rates in Las Vegas are currently at 6.1%, which is 1% higher than the national average. More vacancies mean more competition among landlords looking to secure tenants for their investment properties.
So, if you've already got excellent tenants in your properties, it makes sense to do everything in your power to keep them there.
Lease renewals are one way to let your tenants know you'd like them to stay. Keep reading to find out more about them.
1. What Is a Lease Renewal?
Lease extensions and lease renewals apply when a tenant reaches the end of their existing lease. If both parties agree to an extension of the lease, it simply continues as before.
A lease renewal involves signing a new lease, which often includes a few extra lease renewal terms, such as increased rent.
If you have good tenants in your rental home, a lease renewal allows you to keep them there. The best way to ensure they accept the new lease is by treating them well throughout their existing lease.
Good communication, prompt assistance with maintenance queries, and a friendly demeanor go a long way toward ensuring your tenants are happy in their rental homes.
If you have many tenants, this can prove to be time-consuming and complicated. That's why many landlords hire a property management service to ensure their tenants stay content.
2. The Benefits of Lease Renewal
Lease renewals help both landlords and tenants. As a property owner, you enjoy ongoing rental income and the knowledge that you have good tenants taking care of your property.
You don't need to undergo the hassles and uncertainties associated with finding and screening new tenants, or upgrading your property so it stands out in Las Vegas's competitive rental market.
Lease renewals offer tenants relief from the difficulties of finding a new place to stay and the stress of moving out.
3. How to Go About Lease Renewals
Under Nevada law, a landlord must give at least 30 days notice of any rent increases if their tenants' lease has expired. The same notice period applies to lease renewals, but it's best to give your tenants 90 days' notice of your intention to renew their lease.
This gives them plenty of time to consider their options and gives you more time to come up with a Plan B if they decline your offer.
Lease renewals have three simple steps:
- Negotiating any changes
- Drafting a new lease
- Signing the new lease
It's best to get assistance from a property management firm or a lawyer throughout this process to ensure fair treatment for both parties.
Get Help With Lease Renewals
As a busy landlord, it's difficult to stay on top of all your daily tasks, never mind the finer details of lease renewals.
An experienced team of property managers can guide you through each step of this process and help you find new tenants if necessary.
Avalon Realty and Oaktree management have over three decades of experience in property management. Get in touch to discuss our extensive range of Las Vegas property management services.