As was discussed in an earlier newsletter, a Lease protects both the rights of the Tenant and the rights of the Landlord. A Lease extension is an agreement between all parties that lets both parties know the intent of the other to stay on for another year. As a Tenant, it is good to know that the owner of your property can’t and won’t sell the home you’re in out from under you. With a Lease extension, the Landlord has a comfort level that his mortgage, taxes and insurance will be paid for another year as well.
When the management company reviews the Lease to prepare an extension, several factors are considered. Without question, the Landlord has experienced some increase in expenses. Taxes, insurance, maintenance, repairs and utilities (if included in the rent) all contribute to the Landlord’s cost. Naturally, the Landlord needs to cover this increase which explains the minor increases in rent experienced by most tenants. However, we also review the Tenant to determine the size of the increase as well. Did the tenant make a lot of maintenance calls that were minor in nature? Does the Tenant pay his rent on time or are they in court every month? How does the Tenant maintain the property? Has the Tenant been with us a while?
Naturally, our rents never exceed what market comparables would dictate. Service Specialties Property Management provides good homes that comply with municipal ordinances. That takes time, money and talent. Together (Tenants, Landlord and the management company) we can all work toward happy living for everyone.