Published: 18/11/2022
Lease renewals are an essential aspect of property management that should not be overlooked. At Circa London Estate Agents, we understand the importance of keeping good tenants and the benefits that come with it. By encouraging lease renewals, we aim to minimize the stress and worry associated with void periods. This blog post will discuss the various benefits of lease renewals and how we approach this process.
Renewing a lease is more straightforward and cost-effective than finding a new tenant. When a tenant renews their lease, there is no need to spend time and resources cleaning the property, advertising, and paying a higher commission. One of the most significant advantages of renewals is the time and money savings in finding new tenants.
Another advantage of renewals is that it helps avoid vacancy costs. Properties that remain empty for a long time result in holding expenses such as mortgage payments, property taxes, insurance, and utility bills that still need to be paid even if there's no income. By renewing a lease, landlords can continue to receive rental income and avoid the costs associated with an empty property.
Renewing a lease also helps avoid turnover costs. When a tenant moves out, there may be a need to redecorate or replace furniture to prepare the property for a new tenant. This process can be expensive, and the landlord may need to invest significant money. Renewing a lease eliminates this need and helps reduce the costs associated with turnover.
At Circa London Sales & Lettings, we proactively approach lease renewals. We communicate with our tenants leading up to the lease renewal to give them ample notice to consider whether they want to renew. This approach minimises any void period if the tenant decides not to renew the lease and provides us with enough time to find a replacement.
However, renewing a lease isn't always the best option. For instance, if the tenant has a history of making late payments or has caused damage to the property, it's not worth continuing the stress and friction it causes. In such cases, the better option is ending the lease and finding a new tenant. At Circa London Estate Agents, we assess each case individually and make recommendations based on the best interests of our clients.
In conclusion, lease renewals play a crucial role in successful property management, and at Circa London Estate Agents, we offer our landlords comprehensive London property management services. Our focus is on taking care of the heavy lifting and the small details, so our landlords can focus on the bigger picture. I
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