Embedded Files
On Time Annual Renewals
Once or twice a month a property manager will need to use the Lease Expiration Report to start the process of renewals. Please see Lease Expiration Detail by Month Report under Reports for more details about the report. This section is specifically for leases with lease ends that haven't expired yet and are outside of the required notice period. Typically the deadline for non-renewal is 30, 60, or 90 days depending on the type of lease being signed and the owners' wishes. When using the Lease Expiration Report, you want to be looking at leases expiring in the next 90-120 days. Please see the chart below for more details on months and timing.
You should be looking at the Lease Expiration Report at the middle of the month, or at the very latest the 3rd week of the month. You want to have the owner's decision before reaching out to the tenant about their renewal. You want to give yourself enough time to complete both before the tenant's Non-Renewal deadline.
If you are in June, you want to be looking at leases expiring at the end of October and before. If you are in October, you want to be looking at leases expiring at the end of February and before.
On Time Annual Renewal Email Verbiage
Good Afternoon!
I've reviewed your renewal with the owner. I would like to offer you a renewal for 1 year with a $50 increase bringing your rent to $675. Your lease end is 03/31/2022.A decision on your renewal will need to be provided by 01/30/2021. Please respond to this email or in writing otherwise with your decision. Your decision being either to accept the renewal or provide notice to vacate.
Please let me know if you have any questions and I hope you have a great day!
Thank you!
Sadie
Non-Renewal Email Template to Tenant without Renewal Being Offered:
Good Afternoon!
I've reviewed your renewal with the owner. At this time, a renewal will not be offered to you. Your current lease end date is 03/31/2022. Since a renewal isn't being offered and your lease will expire 03/31/2022, you will need to be vacated from the property by or before 03/31/2022. I do apologize for the inconvenience of this. I wanted to provide you with as much notice as possible.
I want to be clear about your lease end and your obligation to the lease. You will be responsible for the lease, i.e. rent, utilities, etc. until 03/31/2022. If you do find somewhere to move and want to move out much sooner than the end of March, please notify me and we can discuss possibilities. However, unless otherwise notified, you are responsible for the lease until 03/31/2022.
Please let me know if you have any questions.
Thank you!
Sadie
Month to Month Renewals / Leases with Expired Dates / Inherited Leases
Using the same report, Lease Expiration Detail by Month, put together a list of the leases with expired lease ends and/or month to month leases. The month to month leases are leases that have expired in AppFolio without renewals processed. AppFolio automatically reverts the lease to a month to month once the lease has expired without renewal. The conversation will be similar to the on time annual renewal. The main differences are in the email verbiage and the renewal terms.
Typically with an on time annual renewal an increase in rent and the new lease term is negotiated. With a lease that has expired and is now month to month, the negotiation is essentially void. The tenant could easily say no to any proposed rent increase or shorter/longer term. It's much easier to go to a tenant with an expired lease with the same monthly rental amount and a 1 year lease.
Month to Month Renewal Email Verbiage
Good Morning!
I'm reaching out about your lease. You're currently on a month to month lease since your lease expired. I've sent a new lease for you to sign based on your previous lease dates. I do apologize, this should've been taken care of prior to now.
If you have any questions about the lease, please let me know.
Thank you,
Sadie
Owner Email for a Lease Renewal
Good Morning,
Below are the leases expiring by 6/30/2022. Due to the fact that tenants start thinking about renewals between 60-90 days from their lease expiration, I wanted to reach out to you prior to contacting the tenants about their lease end.
06/30/2022 - 1234 Itin Street #4
Current Rent: $725
Market Rent: ~$750
- has paid every month on time.
- listings in the area for 1bed/1baths range from $700 to $800
Recommendation: Renew for another year at $750
06/30/2022 - 1239 Superior Ave #2
Current Rent: $900
Market Rent: ~$900
- has paid every month on time.
- Recommendation: Renew for another year at $900 to avoid multiple vacancies at once, as unit 3 will be nonrenewed.
06/30/2022 - 1239 Superior Ave #3
Current Rent: $850
Market Rent: ~$900
- has not made payment since august
- currently owes $7264.06
- eviction has been filed and tenant has applied for erap
- Recommendation: Nonrenew and re-list unit for $900/mo
Let me know your thoughts.
Thanks!
Renato
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