Maintain and preserve the integrity of your lease with tenants who wish to continue their tenancy
Our LPA Lease contains a renewal section which already prepares and instructs the tenant how to give notice to vacate or renew and extend the lease term. Included in this section is also a place to enter the amount of rent increase.
The Lease Renewal or lease extension form is to be used as a template in order for you to process renewals quickly and easily. Key parts of this form include:
- Identification of the tenants and the premises (Include Tenants Social Security # if possible)
- Sums up renewal agreement as in lease and confirms amount of rent increase if any. It is highly recommended to impose an increase each year, even if it is a small token increase. If you wait and increase a tenant's rent in a few years to catch up to current rents, he'll probably move or feel resentful. You'll feel like you have to explain and maybe even apologize. Remember, almost every tenant already feels like their rent is too high- no matter how great a deal it really is! So raise 'em every year gradually.
- Advise tenant of new lease expiration date. Advise of date of commencement of new rent and amount of new rent payment.
- Advise tenant of additional security deposit requirements if any. We usually raise security deposits proportionately with rents. The additional security deposit should be due with the first payment of increased rent.
- Instruct the tenant of any brokerage and/or processing fees due at this time. (Only if previously agreed in lease)
- Instruct tenant to sign and return renewal or send in Notice to Vacate form by specified date.
This form saves you the time of preparing a whole new lease, possibly having to meet with the tenants, and makes it easy to increase the rent.