Renewing a lease agreement is a win-win situation for both landlords and tenants. For tenants, it means they can face another year without the disruptions involved with finding a new home, and for landlords, it means guaranteed future income for their rental property.
For these reasons, renewing a tenant's lease is usually a simple, seamless process, as long as both parties know what's expected of them.
Read on for more information about how lease renewals work in Hyattsville, MD.
Maryland Laws Affecting Lease Agreement Renewals
The Maryland Landlord-Tenant Act is the main law for lease renewals in Hyattsville, MD. According to this law, the lease agreement must state the initial term of the lease and any conditions involved in renewing it.
Maryland does not have any rent increase restrictions, but the landlord must notify their tenants at least 90 days in advance of any rent increases included with lease renewals. This gives the tenant enough time to decide if they want to accept the new lease agreement terms or not.
If the landlord wants to make additional changes to the lease, they must follow a similar notification procedure. If they are committed to continuing their relationship, the landlord and tenant may negotiate desired changes to the lease during the renewal process.
If either party does not want to continue with the lease once it reaches its end, they must notify the other party in writing. For landlords, different time frames apply depending on the length of the lease.
Tenants must comply with the minimum amount of notice stated in the lease. The tenant's required notice period may not exceed the notice period mandated for the landlord.
Encouraging Lease Renewals
In Maryland, many leases have a provision that allows the lease to renew automatically. Yet, landlords should not assume that the tenant will remain in the unit.
If you wish to retain your tenant, you should encourage lease renewals throughout their tenancy. Some ways to promote lease renewals include:
- Transparent communications
- Prompt responses to repair requests
- Setting a reasonable rent increase
- Staying up-to-date with property maintenance
Some landlords offer their tenants incentives for renewing their leases. These may include desired upgrades, a few months of discounted rent, or customized lease terms.
It makes sense to ask your tenants well in advance whether they intend to renew their lease. This gives you more time to prepare if they intend to move out when their current lease agreement ends.
Hire a Property Manager to Avoid Vacancies
When you own an investment property, losing your tenants can seriously harm your ROI. So, it's important to spend time encouraging your tenants to remain in place.
Property managers take lease renewals in their stride. They can assist you with every aspect of rental property management to ensure tenant satisfaction and help you avoid legal complications.
PMI PG County property management company is backed by over 10 years of real estate experience and offers a comprehensive range of services to assist landlords in Hyattsville, MD.
Discover an easier way to avoid rental property vacancies today.
