Florida's rental vacancy rates are starting to climb and are currently 6% higher than they were in the last quarter.
Most of these vacant homes could be short-term rentals or new construction homes. That doesn't mean Florida landlords should take their existing tenants for granted, though.
High vacancy rates mean there's more housing to go around and, thus, more choices available to renters.
Don't take chances with the tenants you have; keep reading to find out more about lease renewals in Florida.
1. Why are Lease Renewals Important?
Vacant properties cost landlords money. You still need to pay holding costs on these homes, and these amounts can quickly add up if your rental home stands empty for months on end.
Lease renewals are the best way to ensure ongoing income from your investment properties. When you renew a good tenant's lease, you're assured of regular payments, and you know your home is in good hands.
If you choose not to renew your tenant's lease, new tenant placement can take a long time. You need to advertise your rental listing, screen potential tenants, and draft a new lease agreement before you start earning any money from a new tenant.
While tenant screening certainly improves your chances of placing a good tenant, there's no guarantee that your new tenants will be as good as the previous ones.
2. When to Offer a Lease Renewal
First and foremost, you should only offer a lease renewal to tenants who have complied with the conditions of their existing lease.
If you've experienced a stress-free term with these people and want them to remain on your property, Florida lease renewal laws allow for three different time frames for lease renewals.
For annual leases, you must offer your tenant the option to renew their lease at least 60 days before your rental agreement expires. If you have a quarterly rental agreement, you must give the tenant 30 days' notice of your intention to renew their lease.
Month-to-month leases require a 15-day notice period. All landlord-tenant correspondence should be in writing and either hand-delivered or mailed.
3. Considerations for Lease Renewal in Florida
Although vacancies cost money, bad tenants can cost you even more due to property damage and missed payments. You should never renew a lease with tenants who've missed payments or damaged your property.
Another thing to keep in mind is whether you intend to increase your rent when you renew the lease.
Tenants understand that you need to increase their rent to offset expenses. Yet, in some cases, increased rent may force your tenants to look elsewhere for accommodation.
You must send your tenants a rent increase notice if you decide to increase their rent.
Navigating Lease Renewals in Fort Walton Beach, FL
Lease renewals are a breeze when you work with an expert property management company.
All American Realty has years of experience with every aspect of property management in Florida. We can assist you with setting up secure, legal leases, help you find great tenants, and keep them happy.
Get in touch for assistance with all your Fort Walton Beach property management needs.
