Essential Points to Include In Lease Renewal Letter

A well-drafted lease renewal letter is instrumental in retaining quality tenants. A lease renewal letter is to be offered to existing tenants before the termination of the current lease. The purpose of the renewal letter is to highlight changes in an existing lease and to give an existing tenant an opportunity to renew the lease. Before drafting a lease renewal letter, it is important to have an understanding of current market trends, your state’s owner-tenant laws and more.

Even though the particulars of a lease renewal agreement may vary from situation to situation, there are some things to pay special attention to.

Listed below are some important points worth including in your lease renewal letter:

  1. Name and Contact of the Tenant - The names of every tenant residing in the rental should be mentioned in the lease agreement i.e. both spouses in case of a married couple and all individuals in case of unmarried people. This creates a legal responsibility on the part of the tenants for the payment of rent.
  2. Occupancy Limits - As a property owner, you have the right to determine who lives on your rental property. The lease agreement should clearly state who the occupants of the rental are and whether there is a limit on the number of occupants.
  3. Details on Security Deposit - Make a mention of what happens to your tenant’s security deposit in case of an increase in rent. The maximum amount of security deposit will depend on the state laws. Clearly state the amount of security deposit and how you intend to use it in case of repairs and damages. Also mention when the deposit will be returned and whether there will be any deductions when doing so.
  4. Rental Period - The rental period is one of the most important things to state in a lease renewal agreement. Clearly mention the start date of the agreement and the end date. If there is a change in the lease term, it should be mentioned.
  5. New Terms and Conditions - Mention any new terms and conditions that you would like to include in the lease renewal. For example, you can make a list of new tenant responsibilities pertaining to the rental property, procedures for addressing complaints and repair requests, restrictions on alterations and repairs, etc.
  6. Space to Sign - A lease agreement is complete and legally binding only after it is signed by both the tenant and property owner. Set a deadline for the process to speed up the process and once signed, make copies of the same. Deliver the copies to each tenant and keep one with yourself for future reference.
  7. Other Important Factors - In addition to the above-mentioned points, other important things to mention in the agreement include the property owner’s name and contact, health and safety codes, pet restrictions, prohibition of illegal activities and excessive noise, late fees, grace period and more. Choose the right mode of delivery for timely correspondence and consider calling the tenant to inquire whether he has received the lease agreement.
For more information about points to include in lease renewal letter, feel free to contact REAL Star Property Management, LLC at 3901 E Stan Schlueter Lp Ste 100 Killeen, TX - 76542. You can also browse through or call at (254) 935 - 2392.