Everything You Should Know About Notices of Non Renewal
The decision to renew the lease isn’t always an easy one for tenants. There are many factors for a tenant to consider before making their choice, and this can take time—a luxury that landlords often don’t have when trying to find replacement tenants. Without enough time to find and approve a new renter, landlords or rental property owners may be at a loss for rental income.
Fortunately, there’s a simple way to combat this issue: Requiring a 60 day notice of non renewal. When a tenant makes the decision to move out of your unit, you need as much notice as possible so you can begin searching for new tenants and prepare the property for them to move in. By requiring a 60 day notice for your fixed term lease, you can minimize vacancy time and prepare for a new tenant to move in right away.
In this article, we’ll walk through what a 60 day notice of non renewal letter is and how it can help you prepare for a smooth tenant transition.
What is a 60-Day Lease Non Renewal Letter?
A 60 day lease non renewal letter (typically a written notice) serves as a formal communication tool to notify the other party that the current lease will not be renewed, including essential details such as specific dates and reasons for non-renewal. This 60 day notice of non renewal usually comes in the form of a letter, and landlords often give written acknowledgment of the notice to the tenant.
By requiring tenants to provide at least 60 days’ notice if they do not plan to renew their lease, you ensure that expectations are clearly set and that both parties are ready for the transition when the tenant ultimately decides to move out. This requirement means that both you and your tenant have time to prepare for next steps—you have time to find a new tenant, and your tenant has time to search for new housing with a move-out date in mind.
Though some states require 60 day notices (like Delaware and Florida), not all do, so it’s important to check your state’s laws so you know whether you need to include a 60 day notice requirement clause in your lease.
Why 60 Days is a Reasonable Notice Period
So, how much notice for non renewal of lease is actually necessary?
A 60-day notice period is commonly considered reasonable for lease non-renewal, as it provides both parties with sufficient time to prepare for the transition. This two-month notice period allows tenants to find alternative housing, pack their belongings, and make necessary arrangements, while also giving landlords enough time to market the property, screen new applicants, and prepare for the next tenant. However, it’s essential to note that the notice period may vary depending on the terms of the lease agreement and local laws. By setting a 60-day requirement for the non renewal lease letter, landlords can ensure a smoother transition and minimize the risk of prolonged vacancies.
How is it Helpful for Landlords?
How does implementing a 60 day notice requirement benefit you as opposed to shorter notice?
60 day non renewal notices are beneficial for a myriad of reasons that minimize stress and maximize your profit, and requiring them is a common strategy that many landlords use in their rental businesses. However, you'll also have to ensure you understand the legal landscape surrounding lease non renewals so you can properly document and follow the law during the non-renewal process.
Let’s take a took at the advantages of utilizing 60 day non renewal notice requirements.
1. Provides Time to Find New Tenant
As a landlord, your source of income is your tenants. If a tenant moves out with short notice, you’ll be at a loss while you scramble to find someone to replace them. Having guaranteed time built into the lease agreement so you can look for and screen new tenants without stress makes the tenant transition smoother—as one tenant moves out, you can already have one lined up and ready to move in. It also gives you time to address any issues related to the existing lease, to ensure a smooth process and mitigate potential financial losses.
2. Allows Time to Prepare the Rental Property
When tenants move out, landlords take the time to prepare the property for the next renter. This means deep cleaning, repairing any damage left by the last tenant, and completing any maintenance needs so that as someone new moves into your unit, it’s already in good shape. Addressing maintenance requests promptly is crucial in this preparation process, ensuring the property remains appealing and well-maintained.
If a tenant moves out quickly, you may not have the time to fully prepare the property before someone new is ready to move in, which isn’t the best foot to start on with your brand new tenant. If you’re given a 60 day notice of non renewal from your original tenant, though, you can schedule and even begin necessary tasks and save yourself time and energy down the line.
3. Avoids Income Gaps from Vacancies
As mentioned above, you’ll be at a financial loss if a tenant moves out without enough notice to find someone new. If you’re the one terminating the lease, it’s crucial to communicate your intentions regarding non-renewal well before the lease expires to avoid such financial gaps. While you’re busy scouring your area for potential renters to reduce your vacancies, you’re losing the necessary rental income you need to adhere to your budget and run your rental business.
By building the time you’ll need to find a replacement tenant into the lease, you’re ensuring that your rental income won’t be affected by a tenant deciding not to renew their lease with you.
4. Protects Legal Rights
If you’re dealing with a tenant who is causing trouble that warrants legal action, such as causing excessive damage to your property or refusing to pay rent, it can be difficult to pursue the issue if the tenant moves out with short notice. With a 60 day non renewal notice, though, you’ll be afforded the time and opportunity to take action to recover from any losses caused by this tenant. This proper notice will also help you adhere to state laws and protect both landlords' and tenants' rights.
5. Improves Landlord-Tenant Relationship
Along with other benefits of a 60 day non renewal requirement, the ample notice has positive effects on the landlord-tenant relationship. By allowing both parties to adequately prepare for their next steps (letting you find someone new or letting tenants search for a new unit), you’re respecting each other’s time. Providing sufficient notice of non-renewal is not only useful, but respectful. This helps landlords and tenants maintain a positive relationship throughout the final months of the lease so the transition to the next renter is simple and peaceful.
How to Write a 60-Day Non renewal Clause into Your Lease Agreement
When drafting a lease agreement, it’s crucial to include a notice period for non-renewal. This provision ensures that both parties are aware of the requirements for terminating the lease and provides a clear understanding of the notice period. Including a notice period in the lease agreement helps prevent misunderstandings and potential disputes. It sets clear expectations and provides a structured timeline for both landlords and tenants to follow, ensuring a more organized and less stressful transition process.
Here’s how to include the 60-day notice in your leases:
- Include a lease termination clause. This is where you'll describe the notice period required for non-renewal for both parties.
- Specify the difference between termination with and without cause. Even if not in the lease agreement, ensure tenants understand that non-renewal notice at the end of a lease is different from the eviction process and can be given by either party.
- Prepare a non-renewal form. To make things easier on both parties, you may want to prepare a form in advance that tenants should fill out and send back to you if they want to enact the notice period and end the lease agreement at the end of the lease term. This form should include all relevant details, including the expiration date of the current lease, the property address, the rental unit number, and a request for the tenant's new address to send the security deposit.
- Enforce the notice period the same for all tenants. Don't provide exceptions for some tenants and not others. As long as the notice period is listed in the lease, both landlords and tenants must adhere to it.
Conclusion
A good relationship with your tenants and a smooth transition between them begins with clear communication — from Day 1 to the lease end date. By implementing and clearly stating your expectations in a tenant’s lease for a 60 day notice to not renew lease agreements, you can ensure that each party will take the proper steps to ending a lease, eliminating stress and vacancies in your units.
