As you may recall in early 2021, we discussed Electronic Lease Renewals – will the good news is that after tenants having benefited from the paperless system for some time now we launched in late 2021 Landlord Electronic Lease Renewals.
Yes, the email will look a little different and will come from a iPropertyExpress.com email extension.
Leases are a core workflow in property management that need to be executed with care and professionalism to get the desired outcome.
As is the case with property management in general, the lease renewal process depends on a series of decisions made by the property manager, property owner, and the tenant which can be unpredictable and demands adaptability on the part of the team at Philpott’s to avoid delays, frustration, and unnecessary costs.
The dependency on decisions made by owners and tenants means that it is critical to maintain a consistent flow of communication with both the owner and the tenant to ensure all parties are comfortable with moving forward, whether that be renewing the lease or vacating the property.
As we all know at the end of a fixed-term lease we must make some core decisions:
They are:
- Are we happy to offer the tenant a renewal?
- Will the rent price be increased or remain the same?
- Will you be conducting an inspection prior to offering renewal?
- Are we prepared to let the tenant go month-to-month
If the owner is happy to move forward and renew, the next thing is to contact the tenant with our proposed renewal and wait to hear how they would like to proceed.
At Philpott’s we reach out to the landlord at least 90 days before the lease expires. This gives you time to think it over and get back the team in a timely manner.
Ideally, we want to advise the tenant not less than 60 days before the lease expires so they have plenty of time to sign the renewal or if needed we have time to find a new tenant if they decide to vacate.
You should note that a lease can not be terminated in the last 28 days of a fixed term – time is critical!
Our new intuitive software platform aims to streamline the process and reduce uncertainty for both tenants and landlords. We want the product will be to; hold onto great tenants, control the time of year your property is available and avoid the turnover cost associated with finding a new tenant.
We ask you to engage with the platform but should you have any concerns speak to Emily or Danielle in our admin team. We hope it makes the process of lease renewal seamless for both tenant and landlord and are excited to bring this to you.
VACANCY RATES
Adelaide vacancy rates are holding steady and remain at their lowest point since 2017. At just .4% (Dec 21) the vacancy rates are one the lowest in the nation with Hobart only lower at .3% – what this means is plenty of upward pressure on rents.
A low number of listings, surging rents and properties being leased in just two weeks means it is a challenging time to rent in Adelaide. What normally follows is an element of desperation/frustration, people offer over asking and fraud.
We are very aware of the current challenges facing tenants including those tenants of ours which are now shopping in an undersupplied market. Our policy is to treat prospective tenants fairly and communicate with them acceptance or otherwise quickly to allow them to continue the search.
We are seeing almost every lease renewal with some adjustment to rent but acknowledge landlords who are keeping rents affordable to keep great tenants in a surging market.
Rents are being driven by reduced stock in the market, reduced social housing infrastructure, flight aware from the eastern seaboard, desire for a work from home space & shared housing no longer seen as popular or covid safe.
Thank you for your ongoing support!
Regards David, Benjamin & the Team at DB Philpott Real Estate
