When to Ask Tenants to Renew a Lease

My general advice is that a rental listing should come to market roughly 60 – 90 days before it is available to be occupied; even in a strong rental market like Greater Boston is experiencing now, where apartments can rent in days, or even hours, you want to give enough time for the unit to be properly marketed and shown. I’ve known some landlords to wait until less than 30 days before occupancy but the potential problem is that there usually aren’t that many people looking that close to their move-in dates, and the smaller the pool of potential tenants, the less able you are to maximize the full value of your condo/house.

The best way to reach out to your tenants is with a letter, telling them that it’s that time of year again and that you’d like to know within two weeks if they plan on staying, with the understanding that if they aren’t staying, showings of the unit will begin right away. Most landlords will tell their tenants what the rent will be for a new lease in that same letter, although I’ve known a few who wait until people say they want to stay until they inform them of the new rent. When it comes to increases, I find it’s best to be honest with tenants and tell them that while their rent is going up $XX per month, the truth is if the apartment were going on the open market the rent would be going up $XXX; essentially let them know the discount you are giving them for being good tenants.

Once you factor in the two weeks’ time you will give your tenants to make a decision and get back to you (and perhaps the extra few days to get them to respond), you want to get the whole process started no later than 90 days before you’d need a new tenant. And to answer your question before you ask, yes, there is such a thing as too early; no one other than undergraduate students are going to rent an apartment six months ahead of time, so putting it out there now for June 1 means it will likely end up sitting for a while, potentially letting your listing get stale and lost in the shuffle when the influx of property comes on weeks later.

No matter when you decide to send your current tenants a renewal letter you should check in with your friendly neighborhood real estate company – like, say, the Coolidge Corner, Jamaica Plain or Newton Centre offices of Unlimited Sotheby’s International Realty, where there are well trained, full time rental agents waiting for you – to find out what’s going on in the market; maybe you’re way under the average price, maybe you should be thrilled with the rent you’re getting, but talking to a professional will give you peace of mind going forward. Boston Property Care can also take the hassle out of dealing with tenants for you. We are happy to reach out and coordinate renewals with your tenant or find you someone new!

Al Norton

Rental Manager, Boston Property Care