If you own one of the 48.5 million rental properties in the United States, you likely know what a challenge it can be to find quality tenants. Bad tenants can damage your property, miss payments, and even sometimes require eviction from the property.
That's why when you find a good tenant, it's so important to hold on to them with lease renewals. Sadly, there are a lot of mistakes that both first-time landlords and seasoned property investors make when it comes to renewing leases.
Luckily, we made this guide to help prevent these slip-ups by discussing three common mistakes and how to avoid them in the St. George area.
1. Not Doing a Property Walk-Through
A property inspection allows you to see how your tenant is treating your rental. If you find that the tenant is not taking care of your rental, you can sit them down and have a conversation about how to improve things.
Alternatively, you can choose not to renew their lease. Just make sure you engage in careful screening next time to root out prospective tenants who might damage your property.
2. Not Providing the Lease Renewal Notice Soon Enough
Many landlords wait far too long to provide a lease renewal notice. One to two months in advance simply isn't enough time. Instead, we recommend providing at least nine months.
For one thing, this gives your tenant time to think about whether or not they want to continue living in your rental. If they are moving on, then it gives you adequate time to find a replacement tenant.
3. Not Increasing the Price of Rent
If you have good tenants, you might not want to risk losing them by raising the rent. However, there are two reasons you should do this. First, if you don't raise rent for one year, they'll question why you're doing it two or three years later.
Second, raising rent is a necessity with inflation. In just two years the cost of utilities and gas has risen by 20%. Raising the rent in your lease agreement each year helps you combat this inflation.
How a Property Management Company Can Help You Avoid These Mistakes
It's important to remember that these are only the three major mistakes landlords make during lease renewals. There are a lot of other things you need to keep track of to successfully navigate this process.
If you're a first-time landlord in the St. George, Utah area, this can be incredibly overwhelming. That's why property management companies like PMI St. George can be so helpful.
Since we handle all of the details when it comes to lease renewals, you can sit back and enjoy your investment. Best of all, your rental contractor will maximize your earnings by avoiding mistakes like these.
Need Help With Lease Renewals? Contact PMI St. George
We hope this guide helped you learn more about the mistakes you can avoid through lease renewals. Here at PMI St. George, we've seen firsthand the consequences that happen when you make these mistakes.
That's why we're devoted to helping property owners avoid them. If you want to find out all of the different ways that tenant management can make your life easier as a landlord, make sure to contact us today.