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Tribune News Service
Tribune News Service
Business
Gary M. Singer

Real estate Q&A: Do I have to renew lease for tenants who don’t pay rent on time?

Q: Our tenants are nice people but consistently pay their rent late. Their annual lease expires in September, and I do not want to renew it. With everything going on, am I allowed to do this? —Barbara

A: A lease is a contract, and you and your tenant are bound by its terms.

Your first step is to review your lease agreement to see if you agreed to give your tenant the option to renew. Most residential leases do not allow the lease to be renewed and require a new agreement to be signed each year.

Leases that give the tenant the right to continue for another year only allow the renewal if the tenant is in good standing and current on the rent.

If your tenant remains behind on the rent and you have to terminate the lease for non-payment, the right to renew also ends.

Speak with your renters a month or two before the end of their lease so they are not surprised that they cannot stay another year. It takes time to find a new home, pack, and move, and you want to make sure that everyone is on the same page.

Unless a renewal is guaranteed, neither the landlord nor tenant needs a reason to move on other than not wanting to continue the relationship.

Due to the pandemic, there are a lot of protections for tenants right now. This does not mean that your tenant gets to stay for free.

Even if you temporarily cannot evict your tenant, the balance keeps growing, and you may collect this debt long after the pandemic ends.

Many programs and grants are popping up that can assist your tenant in catching up.

Check with your city and county government to see if these will help in your situation.

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