In Colorado, written leases are required for any rental that lasts longer than a month. Renewing a lease can be beneficial to landlords and tenants alike. However, it can be difficult to know how soon to send out a renewal notice.
You want to ensure your tenants have plenty of time to decide on the lease, without putting unnecessary pressure on them. You also want to make sure you are not faced with unexpected vacancies.
For more information about how early to collect lease renewals in Denver, keep reading. This article will give you some ideas on how to set up lease renewal policies that benefit you and your tenants.
A Note on Month-To-Month Leases
Most leases are "fixed-term," or for a set amount of time. This is usually six months to a year or more.
Sometimes tenants may request month-to-month lease lengths. There are many downsides to this--namely that the landlord has little time for marketing the unit if the tenant leaves--but there are some scenarios where month-to-month leases are suitable.
These include situations like temporary rentals when someone is searching for a home or extended stays in a city for business people. However, in most circumstances, a longer lease agreement period is preferable.
Determine if You Want to Renew
The first question you should ask yourself is, "Do you, the landlord, want to renew a lease?" In general, renewal is beneficial. It keeps you from having to spend time and money advertising the property, screening new tenants, and having a window where there is no rent coming in.
However, there are scenarios where you may not want to renew a lease. If the tenants committed lease violations or habitually failed to pay their rent on time, the trade-off may be worth it.
Note that each state has different laws regarding notice to terminate tenancy. In Colorado, for instance, you must give 90 days written notice for a one-year lease or longer, and 28 days for a six-month lease.
Changes to Lease Stipulations
The next thing to consider is whether there will be any changes to the lease, such as a rent increase. If so, then you may want to err on the side of giving your tenants more time to discuss these changes.
If there are changes to the lease, then you need to give notice to the tenant at least 60 days out. You can, however, send the renewal out sooner.
In short, sending a renewal 90 days out, with a deadline of signing at 60 days from the end of the lease, is a good window. This would give the tenant plenty of time to make a decision, and the landlord ample time to relist and market the property if the lease is not renewed.
Learn More About Lease Renewals
Now that you have some information on timelines for lease renewals, you can keep tenants happy while giving yourself time to relist the property, if needed. A reputable property management company can further advise you on this and other issues.
Since 1982, Laureate, Ltd., has been delivering exceptional property and tenant management services and expertise. We want to help property owners get the most out of their investment while providing an outstanding experience for tenants. Reach out to us today to schedule a free consultation.
