Not renewing leases

*NOTE – This article was originally written in October of 2006 for the newsletter.

One of the most awkward situations a landlord can face is informing a tenant that they will not be renewing their lease. Whether the tenant has been in the apartment for one year or ten, it can be a delicate matter. Proper management of the situation will help to avoid lack of rental payment and property damage. Following these tips will help to make the situation easier.:

• Send the tenant a letter explaining that their lease expires soon. Sending out such a letter 45 to 60 days prior to lease expiration will generally lead to the most satisfying results.

• If the tenant was a good one, offer to provide them with a letter of reference for procuring a new residence. Many tenants feel a bit insulted by not being allowed to renew their lease. This action can help to lessen this feeling.

• Avoid threats and insults during the process. Even if the tenant vacates on time, these will increase the chances that the tenant will intentionally do damage to the unit or not pay their last month’s rent.

• If the tenant directly asks why they are not being allowed to renew, one response that is generally well accepted is to say that the apartment needs improvement, which can only be addressed if it is vacated.

If you follow these tips, your chances of a smooth transition will be much higher.
Use them wisely.