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Top 10 Reasons to Not Renew Your Tenants Lease Agreement

Jobe Peterson - Tuesday, January 12, 2021

If you are a landlord contemplating renewing your lease with a bad tenant, you may want to think twice before doing so. There are bad tenants out there who seek individual homeowners and self-managing landlords so that they can push them around. If you get stuck with a bad tenant, it may be difficult to tell them they need to vacate at the end of their lease term. It may be a daunting task, but it may be the difference between a successful rental property and a costly rental property experience if done so correctly. 

Well, in this educational landlord blog, we will give you the top 10 reasons to non-renew your tenants' lease. Why to not renew their lease, and how to get them to vacate. Now you may be thinking; I don't want to have to go through a vacancy. The carrying costs, the uncertainty of time on the market, the unforeseen can be scary, but these are the ten reasons to consider not renewing your tenants' lease agreement. 

  1. Your Tenant is Behind on Rent

  2. More Than Three Late Payments by Your Tenant

  3. Communication: Tenants Blowing you Up 

  4. Your Tenants Problem with The Property 

  5. You Lose Sleep Over Your Tenant

  6. Can't Follow the Lease Agreement

  7. Neighbor Complaints

  8. HOA Violations

  9. Unauthorized Pets

  10. Property Damage 

1. Your Tenant Is Behind On Rent. 


Now, if a tenant gives you their 60 or 30-day notice of wanting to renew the lease agreement, but they are behind on last month's rent or two months behind. It doesn't make much sense to renew a lease agreement if they haven't paid their prior months' rental payment. By signing another 12-month lease agreement, you're locking yourself into a problem situation when you can get them caught up and wipe your hands clean of the tenant.

2. Your Tenant has more than three late payments in the last 12 months. 


When it's time to give your tenant's lease renewal offer or notice of non-renewal, you will typically know right away what you're going to do. This blog is more for the "on the fence lease renewals." But this one is easy, there is nothing worse than sporadic rental payments from your tenant. Your bills become due, and with a late-paying tenant, it seems like your one step behind. Waiting or pondering every month hoping you'll receive your rental payment on time is exhausting. It's mentally challenging and not worth your health as a landlord, hoping your tenant will make the payment on time every month. It's best to cut your losses and non-renew your tenant's lease agreement if they've had more than three late rental payments throughout their lease term. If you're having to chase down rent every month, it's best to non-renew the lease agreement. 

3. Communication. Your Tenant Blows You Up Constantly. 

One of the best reasons to use a property manager to handle your rental property is to eliminate the need and requirement to communicate with your tenant. They are your shield and this is a special relationship for your success. But if you are a self-managing landlord, you are forced to work directly with your tenant and resolve their needs. They know who you are, they have your cell phone number, and they may even know where you live. If you are getting blown up by your tenant at all hours of the day through multiple channels for non-emergency items. Non-renewing the lease agreement may be your lifeline from the never-ending text chain. 

4. Tenants Endless Problem With The Property. 

In those never-ending emails, phone calls, text messages, or even social DM's. At the root of constant communication will always be a problem, whether that be their personal problems that have nothing to do with you or, more likely, a laundry list of issues with the property. No matter what you do, how many technicians you send out, you won't be able to please your tenant. If it's not one thing, it's the next. Your rental property could be a new construction single-family home with a brand new HVAC, roof, appliances, paint, (that they loved when viewing the home.) It won't matter; there will still be a problem with your rental property. If the complaints of the house are endless and they still want to renew. It's best to save yourself a headache and non-renew.

5. You Lose Sleep Over The Tenancy.


Owning a rental property and being a landlord should not affect your mental health or everyday life. If your tenant renting out your rental property is keeping you up at night. Your non-renewal notice is your time to take back your psyche. Another solid reason to hire a property manager is to pass the buck of the duty falling on you. If you are a first-time investor, it's an absolute must to have a property manager. Suppose you are looking at the property as an investment like you would a stock. Are you better off opening a T.D. Ameritrade or Robinhood account and picking your individual stock portfolio? Or having a wealth manager or stockbroker build out your portfolio? Heck, even a solid Acorns account is a good option. If you're losing sleep over your tenant for any number of reasons, then it is best to consider non-renewing your tenant's lease or hire a property management company. To which they will non-renew the lease agreement for you.

6. Your Tenant Can't Follow The Lease Agreement. 

The lease agreement will outline your tenant's terms and conditions, and you, as the landlord, will have to follow them throughout the tenancy. Each party has its duties and responsibilities. Here in Florida, they covered under the Landlord/Tenant Law in Chapter 83, Part II, Florida Statutes (F.S.). If your tenant just can't seem to follow the lease agreement or even simple directions on how things will operate. It is best to consider a notice of non-renewal. 

7. Neighbor Complaints.

Many rental property owners start out being new landlords when they decide to move out of their primary home into a bigger home because their family is expanding, needs to be in a particular school district, etc. They've lived in their previous house for several years. Made great relationships with the neighbors and "proof" you're gone, and you have a tenant living in your old home. You're lucky because you've made all these great relationships in the neighborhood. They still keep in touch and let you know how the property is looking if the tenant maintains things. But once you start getting multiple neighbor complaints about your tenant doing something, they shouldn't be doing per the lease agreement. It may be an excellent idea to non-renew. 

8. Neighbor Complaints, Bring HOA Violations. 

Suppose the neighbors are messaging you over complaints about your tenants. It won't be long before you start getting the HOA notices to cure violations. According to the Foundation for Community Association Research, Florida is the second-highest state behind California for the number of Homeowner Associations at 48,500 associations with as many as 9,567,000 residents. Meaning there are a lot of rental properties located in a homeowners association (HOA) or condominium boards. If your rental is one of those income properties, there is nothing worse than the threats, fines, and violation notice regarding your tenant. If you continue to have to instruct the tenant of the HOA community rules, a non-renewal may be in your future. If your tenant is horrible, your HOA may even try to evict your tenant, and you bet they'll be charging you the property owner. 

9. Unauthorized Pets

As a landlord, if you do not allow pets in your rental property, it's likely due to PTSD, developed from an experience with a crazy destroying dog-like animal similar to the movie "There's Something About Mary." If your tenants moved in without a pet and six months in, you find an unauthorized pet during your periodic inspection. Not only do you need to serve your seven-day notice to cure if you're not comfortable with the pet. But you may assume they may be pulling something else over on you. Allowing pets in your rental property is a great way to expand your prospective tenant pool and increase income on the property with monthly pet rent. Allowing pets, of course, carries some risk of property damage. However, the issue develops when the pet is not adequately vetted. That's when it can become a hazard. But tenants do bring in unauthorized pets, and it's something you should take seriously if they do. Unauthorized pets are a cause to consider non-renewing a lease agreement. 

10. The Tenants Causing Property Damage.

We'll keep this one short if you notice severe property damage caused by the tenant throughout the lease agreement and complete disregard for the property's integrity. Move on and move along. There are plenty of quality tenants out there that would respect, maintain, and enjoy your rental property. Non-renew and re-up for that tenant. 

Final Thoughts: Non-renewing Your Tenants Lease Agreement.

Depending on your personality, you may feel a mixed bag of emotions on the thought of delivering your non-renewal notice to your tenants. Your gut is typically right; if you don't even have to consider not renewing your tenant lease agreement, you're sitting in the sweet spot with a great tenant. Keep in mind, here in Florida, you do not need to give a reason for not renewing your tenant's lease agreement, so it's best to keep it sweet, emotionless, and professional. If you need assistance with your Orlando rental property, reach out to a professional property management company. We here at The Listing Real Estate Management are your full-service Orlando property management provider servicing all of Central Florida's property management needs, including Orange County, Seminole County, Osceola County, and Lake County. 


Author

Jobe Peterson



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