You have a new tenant interested in your property, and the current tenant is nearing the end of their lease. You need to plan well, so you dont experience a lapse in your income. What is the best course of action?
Our TIP: Contact your existing tenant about 60 days before the end of the lease and find out their intentions.
Having a signed agreement to vacate, will help you as a property manager. If the tenant does not vacate, you have further proof of their stated intentions if you end up in a dispute. If the landlord does not like the existing tenant and wants to end the tenancy at the lease term, the landlord may have to take legal steps to re-gain possession. It is good to know well in advance, so you can plan your strategy.
On the other hand, if the landlord likes the existing tenant, it may be beneficial to negotiate a new full-term lease or renewal. Then you are not left to guess when the tenant may decide to give notice and move out.
Another option to consider is having your legal adviser review your standard lease agreement. If necessary, you can add in any available options for hold-overs. There may be many provisions you forgot to include on the original lease. For example: A provision that allows a landlord to increase the rent once the tenancy goes month-to-month? Or an option to have the lease renewed for a new term, for instance one year, rather than go month-to-month?
If you pursue information in advance, and keep on top of your leases, it will benefit your income.