How to deal with renewals in private rented properties
Tenancy renewals are a regular occurrence for any letting agent, who has to deal with many properties coming to the end of their agreement periods. However, it can be a potentially stressful time, with tenants and landlords likely to disagree on some terms and conditions, not to mention prices, for the next agreement period. As a letting agent, it's your job to be the mediator and make this process as smooth as it can possibly be.
Here, we take a look at some of the best ways letting agents can deal with renewals and how to make the process go without a hitch.
Length of tenancy
Probably one of the more difficult things to come to an agreement with both tenants and landlords on these days is the length of the new tenancy. Landlords, who don't want to experience void periods, are more likely to want to secure tenancies for a year or more, whereas many tenants will want a shorter tenancy to keep their options open in the future.
The best thing to do is to contact the landlord initially and ask their preference before you get in touch with the tenant. From there, inform the tenant of what the landlord requests, and then if they push back, be the negotiator for both parties, helping them to come to some sort of agreement or middle ground.
Price rises '
When it comes to rent, it's best to try to act as an advisor to the landlord. The majority will see the market as it's performing now as a good chance to increase what they ask from their tenants on a monthly basis, but this is not always the best option.
Before the time comes to ask the landlord about price rises, take some time to do a bit of research. Look at the market in the area the property is situated in, and see how the current price stacks up against what others are paying. If your landlord is charging less, then it can pay to ask for more money when renewing, but you don't want to risk turning the tenant away by automatically increasing every year, so also pay attention to when you last requested a rise in price.
Updates and policies
It can also be a good idea to take the chance to renew the tenancy document when it comes time to sign again. If the tenant and landlord come to any new agreements around things like the tenant's ability to decorate, or if they are allowed pets in the property, then it's essential that you write this into the document to protect both parties in the event of a dispute.
It's also a good idea to just ask the landlord if there's any change in their requirements or policies for the next tenancy period, so you can have them added before the tenant signs back on again for the next few months.