Published: 18/11/2022Lease renewals are an integral part of a successful rental. At Circa London Estate Agents we do our utmost to encourage good tenants to renew their leases repeatedly to relieve the worry of void periods.
The benefits of renewals include:
Avoid the Process of Finding New Tenants
From a practical point of view, securing a renewal from an existing tenant saves time and money, from cleaning bills to paying a higher commission. The commission on a renewal is less than the commission for obtaining a new tenant.
Avoid Vacancy Costs
Void periods are expensive due to the holding costs associated with an empty property and the rent loss. Mortgage payments, property taxes, insurance, and utility bills still have to be paid, even if there's no income.
Having to "sell" the property to a new tenant can be expensive, and this may involve redecorating or replacing furniture, for example. Renewing an existing tenancy is much simpler, as they already know the property.
It is often easier to deal with someone you already know than someone new. Predictability is a positive thing in this industry, and a lease renewal can allow this.
What we do
We never assume that a tenant will remember when the lease ends or what was agreed upon when the lease was signed, so we communicate leading up to renewal. This gives the tenant plenty of notice to consider whether they wish to renew. If they turn down the offer, we have time to find a replacement in good time to minimise any void period.
Renewing a lease isn't always the best solution. For example, if your tenant has a history of making late payments, there's no point in continuing with the stress and friction that this causes. Or the market may have risen substantially, and the existing tenant might not be willing or able to pay the increased rent the property cannot command. You may achieve a much higher rent by ending the lease and starting a new tenancy. An essential part of our job is to ensure our clients are getting the best possible rents in line with market conditions.
At Circa London, we take pride in our ability to offer our landlords a comprehensive London property management service. We take care of the heavy lifting and the small details enabling our landlords to look at the bigger picture.