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Property management: when the lease ends

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Nesbitt Realty has managed many of our accounts for years and through several rental cycles and leases. Two months before the lease ends we will send a notice to the tenant to determine if the tenant wants to stay or move. When a lease ends, there are two possible outcomes:
  1. The tenant moves out.
  2. The tenant stays.

Tenant Moves Out

Our default position is to keep a rental property in production. That is to say, we try to keep our rental properties producing the maximum possible income for the landlord. Sometimes a landlord decides not to rent again. For example, sometimes the landlord moves back into the property. At other times, the landlord decides to sell the property. (We often help our landlords sell and buy real estate in Northern Virginia.) No matter what the reason if the landlord decides to take the property out of production, we promptly close out the account returning any reserves or funds to the landlord along with a final statement. More often, and most commonly, the tenant gives notice to move out and Nesbitt Realty immediately lists the property for rent. Our goal is to get the new tenant in with the minimum amount of vacancy and thereby maximize the rent for the landlord. When this happens, the landlord is responsible for the cost of the commission expense to find new tenants. Most rarely, tenants break the lease.  Because the tenant is breaching the contract, the tenant is responsible for the cost the commissions and is responsible for the cost of the vacancy.

Tenant Stays Renews

When a tenant opts to stay in the property we generally give the tenant two options:
  1. Go to a month-to-month lease with a very significant rental increase
  2. Sign a new lease for another year with a small increase.
The reason Nesbitt Realty offers a landlord's property at a much higher rate when the tenant stays on month-to-month is because of the uncertainty this situation gives to the landlord.  The reason we offer the lease with a increase is because every year taxes and association fees and expenses go up.  The amount of the increase is in part a reflection of the experience we've had with the tenant. Tenants who take good care of a property and who make timely rent payments will be offered smaller increases. For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.    

Advantages of Nesbitt Realty Property Management

Marketing

Nesbitt Realty's website has one of the largest Internet footprints of any real estate site in Northern Virginia.  In addition our agents are skilled at leveraging MLS exposure, Internet articles, local print media and more. By using professional photography, videos updates, maps, and more we can make sure that buyers and renters have the information that they need to make an informed decision about your property.
Julie and Will
Julie and Will Nesbitt pause from property management to take a quick picture.

Daily Landlord Responsibilities

Nesbitt Realty provides and maintains a level of separation between the landlord and tenant so that we ensure that business matters are always handled in a business-like fashion.  Nesbitt Realty has systems in place to handle emergency repairs and can find the right provider at the right price to keep your investment in top shape.

Property Upkeep

Nesbitt Realty has a list of vendors that have proven to be reliable and reasonably price to handle problems when they arise. We are also willing to work with contractors, handymen and other providers that the landlord recommends. Property maintenance is never a profit center for us.

Communication

We always pick up the phone. We respond to all emails, in a timely fashion.

Rent Collection Service

We expect tenants to pay on time and we hold them accountable for late payments. We process rents quickly so that landlords get paid quickly. If needed, we serve late payment notices, eviction notices, etc.  to maintain orderly and regular rental income.

What’s involved in Property Management?

703 765 0300 As a landlord, you could do property management yourself, or you could hire a property manager like Nesbitt Realty to oversee the duty. Nesbitt Realty is accountable for property management details like:
  • Determining a competitive rental price, to get it quickly rented, with as little days vacant on the market as possible
  • Suggestions for improvements
  • Showing the property to prospective tenants
  • Processing rental applications
  • Tenant background investigations
  • Creating a lease
  • Property inspections
  • Rent collection
  • Overseeing repairs
  • Creating 1099 tax forms
  • Handling tenant requests
  • Managing security deposits
Aubrey NesbittAbout the Author --- Aubrey Nesbitt is a native of Northern Virginia who attended Virginia Commonwealth University. He is a veteran of the US Army and helps his family business by providing informational articles like this one. In addition to photography and blogging, Aubrey provides administrative support for the office.