For the full detailed process - please see the Trello card - Lease Renewal
Admin support will create the renewal Trello cards for you, if you need to add one yourself please see below document.
If a tenant and landlord agree, the lease can be extended for a further period after the lease expires. At Magain City Realty, the process for renewal of a lease will commence 120 days before the lease expires.
The Property Manager’s responsibility is to:
Assess whether to recommend renewal to the current tenant
Obtain intentions from the tenant (do they want to renew or vacate)
Formulating recommendations to the landlord and seek their instructions to renew
Negotiate terms between all parties
Signing lease renewal documents
Start of process
At 120 days, an automated email is sent to the landlord to let them know that the renewal process is underway and the Property Manager will be in contact shortly. Prior to contacting the landlord, it is the responsibility of the property manager to:
do a rent review to make sure the rent achievable is in line with current market trends (refer to the below). It is a good idea to also check Real Estate.com.
Completing a Comparative Market Analysis (CMA)
Increasing the rent for NRAS properties
This is the same process but the rent can only be increased on the latest valuation or CPI increase. Rent is a maximum of 80% of the current market value. If a valuation is required, this will be noted on the Trello card
check to ensure that the rent has not already increased within the previous 12-month period
check the tenancy has run without incident over the previous term of tenancy. This would be assessed by reviewing rent payment history, review of the routine inspection report and checking the maintenance portal to ensure that the tenant has not made excessive, unwarranted maintenance reports.
the tenant's conduct and communication during the tenancy.
check the amount of bond being held. Where there has been a long-term tenancy, the amount of bond being held may no longer be sufficient.
Email templates available in Property Tree
There are 2 email templates available if needed:
a) Unable to contact the landlord on the phone (Residential) Lease Renewal >Owner>Gaining renewal instructions
It is recommended to use this template as it states details of the current legislation.
b) Phoned landlord & received verbal instruction - (Residential) Lease Renewal > Owner . confirming renewal instruction
Once the landlord's instructions have been received, a formal offer by way of a lease renewal form is issued to the tenant for signing.
Update fields on Trello Card
Click on the tab "Lease Info" and complete all fields under Tenant Information, Landlord Information and Terms.
Follow steps accordingly on the Trello Lease Renewal card to advise the tenant a lease renewal has been offered.
At this stage, the tenant may indicate they will vacate, so a vacating Trello card can be created. If unable to contact the tenant by phone, an email template in Property Tree is available: (Residential) Lease Renewal > Tenant > Offer to Renew
Lease Renewal Fee
Check the fee in Property Tree. Click on the Financials tab under the property profile where the fees payable are listed.
The fee is generally equivalent to 1.1 weeks rent but as these change from renewal to renewal, a $ amount cannot be entered into the field. Therefore, this is denoted by an entry of $1.10. If unsure, best practice is to check the management agreement in One Drive.
The fee, when calculated is put into the Trello Card under the "Lease Information" tab
