Renters make up over 50% of the residents in Seattle and the surrounding areas. Owning a rental property in the Emerald City presents you with many opportunities to increase your income. Due to the high demand for rental units, you won't experience a shortage of interested tenants.
Retaining high-quality tenants is important. If you have lease renewals for some of your best renters coming up, you will need to know what steps to take before the renewal period. You need to know ways to get them to sign another lease agreement.
This guide will discuss everything you need to know about renewing a lease for your renters in Seattle. A professional property management company can help you navigate the process.
What Are Lease Renewals?
Lease renewals are when your tenants continue to live in your rental property once their original lease is up. Renewing their lease might include some of the following items:
- Including new rules
- Adding updated terms
- Extending the lease timeframe
You and your tenant will need to agree to the new terms included in the lease. You'll both have to sign the updated agreement before it goes into effect.
A lease renewal is different than a lease extension. A lease extension extends the current lease terms. A lease renewal is a brand new agreement that might have different information than the first one.
Can I Raise My Tenant's Rent?
A property owner can increase their property's rent with a lease renewal. In Seattle, rent increases have to start at the beginning of a rental period. Property owners have to give their tenants 180 days' notice before a rent increase.
Keep in mind that increasing your unit's rental price might motivate your tenant to find housing elsewhere. You also can't raise the rent after they've signed the lease renewal.
What are the Benefits of Lease Renewals?
There are numerous benefits you can experience as a property owner. You can have good tenants stay for longer by renewing their lease.
It costs property owners a lot of money to find new tenants if their current renter leaves when their lease expires. You'll spend money on the following things:
- Get your unit ready for rent
- Showing the property to prospective tenants
- Conducting background checks
Lower your turnover costs by renewing your tenants' leases. You'll also ensure you have a steady cash flow. You'll miss out on one or two months of rent if your tenant leaves their unit.
Hire a Property Management Company in Seattle
Lease renewals are a mutually beneficial action for you and your tenants. Offering lease renewals to tenants that pay their rent on time and you have a good relationship will help them stay on your property for longer. Property managers in Bellevue and Seattle can assist you with the lease renewal process.
If you're looking for a leading property management agency in Seattle, look no further than Brink Property Management. Our experienced staff is here to help you find and retain quality tenants. Contact our office to request a consultation.