03 July 2024
Renewing an unmanaged lease agreement is a big deal for landlords - as it impacts their rental income and relationship with their tenants. Knowing how the renewal process works and what to consider is essential for ensuring a smooth process for all the parties involved. Here are a few tips to help landlords navigate through renewing an unmanaged lease agreement:
1. Tailored Tenant Procurement and Extension Services: When a landlord signs an unmanaged lease agreement with a rental agency it is important to remember that the lease agreement includes a clause that entitles the rental agency to a commission if the lease is extended beyond the initial term. For example, The landlord appoints a rental agency to find a tenant for a specific period. If the tenant and landlord are both satisfied and decide to extend the lease beyond the initial term, it indicates that the agency has effectively secured a tenant for a longer period based on the landlord's needs. Therefore the rental agency will be entitled to a procurement commission.
2. Landlord’s Needs: Landlords seek reliable tenants who maintain the property, pay rent promptly, and adheres to the terms of the lease agreement. The rental agency responsible for tenant procurement needs to ensure that these standards are respected and fulfilled at an agreed-
upon commission based on the full value of the lease and any extensions.
3. Legal updates: Laws and regulations, including those under the CPA and industry standards are constantly changing. We understand that landlords have numerous other responsibilities, so staying informed about these changes can be challenging. Therefore, we recommend that landlords renew the lease agreement with their rental agent to ensure compliance and to obtain the most current, legally up-to-date lease agreement.
4. Inspections: It is vitally important to remember that the landlord will need to conduct another joint inspection at the renewal of the lease agreement. This inspection will help document any defects or damages. It is highly recommended that the landlord use the same rental agent to assist with inspections, as this report becomes part of the lease agreement and protects both the landlord and tenant.
5. New Tenants: What happens if the tenant decides not to renew? The landlord would then need to approach their rental agent to find a new tenant who meets their needs. Making use of rental services offered by the same rental agent ensures that the landlord gets the same excellent service and tenant quality they’ve come to trust and rely on!
Is it time to renew your unmanaged lease agreement?
Look no further, renewing your unmanaged lease agreement with Rawson Rentals provides landlords with a strategic advantage. Our tailored tenant procurement and extension services, coupled with expert guidance on legal updates, deliver unmatched support and ensure optimal outcomes for your rental property needs!
