Tenants play a vital role in rental properties; they are the reason the industry exists. Without tenants, a rental property will severely damage the property owner's ROI.
A property can stay tenantless for many reasons, the main one being the lack of notice to find a new tenant.
When a tenant's lease term ends, they are expected to renew if there is no prior official notice. However, not all tenants write a lease termination letter before moving on, leaving the landlord in a time crunch to find a new tenant. This is why landlords should require a 60-day notice of non-renewal letter.
Requiring a proper notice of non-renewal will give the landlord more time to find new tenants and prepare the property accordingly.
This blog will help you understand why you, as a landlord, should require a non-renewal lease letter.
Before we dive into the benefits of requiring non-renewal notices, let's first define their purpose.
What Is It?
A 60-day notice of non-renewal letter is a written notice that a tenant provides to a landlord to inform them that they will not be renewing their lease.
This notice typically specifies the date the tenant will vacate the property. It is generally given to the landlord at least 60 days before the end of the current lease period.
In some situations, a 60-day notice of non-renewal is required by state or local law. This requirement is in place to protect the rights of both the landlord and the tenant.
For the landlord, it ensures they have enough time to find a new tenant and avoid any potential gaps in income.
For the tenant, it ensures they have enough time to find a new place to live without feeling rushed or pressured.
When a tenant provides a 60-day notice of non-renewal to their landlord, the landlord is typically required to acknowledge receipt of the notice in writing. In cases of long distances, certified mail can help. This acknowledgment indicates that the landlord was notified of the tenant's intention to vacate the property at the end of the current lease period.
Sometimes, a tenant may give their landlord a notice of non-renewal shorter than 60 days. While this is not illegal, it may cause problems for the landlord.
For example, suppose the tenant gives a shorter notice period. In that case, the landlord may not have enough time to find a new tenant before the current tenant moves out. This could result in a gap in rental income for the landlord.
Now that you understand what a 60-day notice of non-renewal letter is let's discuss how it can help you as a landlord.
How Can It Help a Landlord?
As a landlord, it is vital to have transparent and fair policies to protect your interests and those of your tenants, like requiring a 60-day notice of non-renewal.
A 60-day-non renewal of lease letter policy has many advantages for landlords, such as:
- Time to find a new tenant
- Avoid gaps in rental income
- Prepare the property for the next tenant
- Maintain a positive relationship with tenants
- Protect your legal rights
Now let's go over these advantages to showcase this official notice's importance.
Time to Find a New Tenant
A 60-day notice period gives the landlord plenty of time to find a new tenant for the property before the lease expiration date. This is especially important in housing markets where available rentals are scarce, and competition for them is high.
By giving yourself plenty of time to find a new tenant, you can reduce the chances of having your rental unit empty for an extended time.
Finally, if your tenants are located in a different state or you recently moved, ensure to have a forwarding address so that the letter can reach you promptly.
Avoid Gaps In Rental Income
A 60-day lease non-renewal period also allows you to avoid any potential gaps in rental income.
If a tenant were to give you a shorter notice period, you might not have enough time to find a new tenant before the current lease expires. This could leave you without a source of income for a period of time, which can be financially detrimental.
By requiring a 60-day notice, you are giving yourself the time you need to find a new tenant and avoid potential gaps in income.
Prepare the Property For the Next Tenant
In addition to the financial benefits, a 60-day notice period also gives you more time to prepare the property for the next tenant and new lease.
This might include:
- making necessary repairs
- deep cleaning the unit
... and many more preparations.
By having more time to prepare the property, the landlord can build the best possible conditions in the rental home, which can help attract higher-quality renters.
Maintain a Positive Relationship With Tenants
Requiring a 60-day notice of non-renewal can also improve your relationship with your tenants in the existing lease term.
As a tenant, giving the landlord a written notice of an upcoming move shows that you respect their time and their need to plan for the future. In addition, this can help foster a sense of trust and goodwill between both parties, making for a more positive rental experience.
Protect Your Legal Rights
In addition to the benefits already mentioned, requiring a 60-day notice of lease non-renewal letter can also help protect your legal rights as a landlord.
If a tenant were to give you a shorter notice period, you might not have enough time to take legal action if they fail to pay rent or cause damage to the property exceeding the security deposit.
By requiring a 60-day notice, you are giving yourself the time to address any potential legal issues before the current lease agreement expires.
Now that we know what a non-renewal lease letter can do for landlords and tenants, it's important that you learn how to write one in order to instruct your tenants; let's learn how to write one in the next section.
How to Write One
A notice of non-renewal can be tricky to write for some tenants, but overall, it is very simple. Here is a step-by-step guide.
Start by clearly stating your intention to not renew the lease. This should be the letter's first sentence so that there is no confusion about your intentions.
For example, you might say, "I am writing to advise that I will not be renewing my lease when it expires on [date]."
Provide the details of your current lease, including:
- The date that it expires
- The address of the property
Adding this information will help the landlord understand specific situations and make any necessary arrangements.
Explain your reasons for not renewing the lease; this is optional.
Although not required, it can be helpful to your landlord, as it can give them some insight into your decision and help them to prepare for your departure.
For example, you might say, "I have decided not to renew the lease because I am moving out of state."
Then, include a polite closing statement and your contact information.
This will allow your landlord to reach out to you if they have any questions or concerns.
For example, you might say, "Thank you for your time. If you have any questions, please do not hesitate to contact me at [email address] or [phone number]."
Carefully proofread your letter to ensure that it is free of errors and clearly written. This will ensure that your intentions are clearly laid out.
Finally, sign the letter and send it to your landlord via the method specified in your lease agreement. This might be by mail, email, or in person.
In conclusion, requiring a 60-day notice of non-renewal from your tenants is a smart move to maintain your property active.
These letters will also help keep a good relationship between the tenant and the landlord once the lease agreement ends.
Now that you understand how a 60-day notice of non-renewal can benefit you, it is important that you communicate this with your tenants when signing new lease agreements.