LEASE RENEWAL PROCEDURES
Revised 4/5/16 5.1
AUTO-RENEWING AND NON-AUTO-RENEWING LEASES
It is our intent to have as many residents as possible on one year auto-renewing leases at market rent that increase 2% every year. We may have some circumstances where a resident needs to sign a short term lease and pay the appropriate premium, where by law, the lease cannot auto-renew for a year term. CMHA leases also are restricted from auto-renewing, since a “rent determination” needs to be completed every year by CMHA, thus they will not just approve an automatic 2% rent increase.
For these two circumstances (CMHA & Short Term), we will need to still notify the residents more than 60 days prior to their lease agreement by law of the upcoming terms of their lease renewal. This possibly creates two separate lease renewal efforts for a month’s renewals (Auto-Renewing & Non-Auto-Renewing residents). This must be monitored closely to ensure all proper documentation is delivered to the resident to fulfill our legal requirements of the Rental Agreement.
As referenced below, all Non-Auto-Renewing residents must receive their 60+ day legal notification letter (we send at 90 days prior). Whereas all Auto-Renewing residents just receive a (30 day prior to automatic renewal) reminder letter, since they have already agreed to the 2% increase terms at the original lease signing. We are just simply “reminding” them of their original agreement terms that are due to increase the following month.
NON AUTO RENEWING LEASES (CMHA & SHORT TERM)
*The following Steps will be taken at renewal for Residents who did not sign an Auto Renewing Lease at Move In (CMHA & Short-Term residents).
Renewals for CMHA Residents: All renewals must be walked by Property Manager and Area Manager for determination on renewing or non renewing. See CMHA Policies Section 1.90
STEP 1 – 90 DAY REPORT
1) Each month on the 25th, the Account Specialist will email each Property Manager a copy of their 90-Day out renewal report. This report will list all of the Non Auto Renewing leases that will be expiring in 90 days. The Report Reads as Follows:
a. Unit# - The unit the resident occupies
b. Unit Type - floor plan associated to the unit occupied
c. Resident T Code – This is an number assigned to each resident automatically by Yardi (this number can be used to look up the Resident or entered to pull renewal letter)
d. Status- This will say current or notice
e. Name - lease signer
f. Lease Desc - designating what type of lease term is expiring
g. Lease From - Date current lease began
h. Lease To – the date the lease expires
i. Auto Renewal Expiration - will always be blank
j. Market Rent – This should be the current Market Rent of the unit
k. Charge Code - rent code will be listed here
STEP 2 – NON AUTO RENEWING LETTERS
1) Each Resident listed on the 90 Day Non Auto Renewal Report must receive a 0811 Renewal Letter by the first of the following month.
2) How To Pull/Edit/ Print the 0811 Renewal Letter
a. Go to the Reports - Resident - Residential Correspondence.
3) Enter your property, post month, verify document date, choose category - Renewal Letter, Choose Report Type -Document you need to generate, Check off Merge Documents in Single PDF
4) Next choose the Resident link -
a. Choose your property, status of current, then choose find
b. Select all the residents who need to receive the letter then choose OK
c. The list will now show in the Resident box all the t codes each separated by the ^ character
d. Choose Generate Documents - all of the letters will populate in a PDF that will populate onto
your screen
NOTE: If you are having trouble printing the letters make sure your AR Account Specialist has entered a Renewal Proposal AND Approved the proposal. If the Renew step has been completed, you will not be able to pull these letters in Residential Correspondence.
e. Final step is to now select Attach Documents & then choose Generate Documents, this step will
attach the letters to the Resident record for future reference
STEP 3 – PREPARE RENEWAL PACKETS
1) All Leases and Renewal Checklists (referenced below) will be generated by you. If you need a CMHA Lease you will need to manually update the file located on your computer desk top.
2) Your Lease Renewal Packets includes (1 Copy each):
Make sure to have the lease packet prepared “before” the mandatory lease signing appointment.
a. Renewal Checklist (0808)
b. Rental Agreement (0202) – Possible Agreements include: CMHA Rental Agreement, Short Term Rental Agreement, MTM Rental Agreement (see below for more information)
c. Crime Free/Drug Free Addendum (0204) – Always included
d. Pest Management Addendum (0220)- Always included
e. Other Appropriate Addendums (Rent Credit, Pet, Garage, etc)
f. If CMHA – A copy of the “Rent Increase Request” (sent by Corporate) must be included- This must be signed at least 60 Days before the lease expires. (See Section 1.90 for more details)
3) Place all forms (in the order above) in a manila envelope for the resident to sign
STEP 4 SHORT TERM LEASES / MTOM LEASES (If Applicable)
- If you are generating a Short Tem Lease you will be able to generate your lease through the renew steps
within Yardi, located on the Dashboard. First you must Edit the Proposal to the appropriate lease term
then renew and choose the Lease Doc button
1) Short Term Leases - K & D Policy is to offer one-year lease terms. However, to be as accommodating as possible to our good resident’s needs, the resident may choose one of the following: *If choosing one of these options make sure to choose the appropriate short term lease term when
editing the scheduled renewal on the Yardi Community Manager Dashboard*
a. Nine (9) month lease at a premium of $35.00 per month
b. Six (6) month lease at a premium of $50.00 per month
c. Three (3) month lease at a premium of $75.00 per month
d. Month-to-Month Lease at a premium of $100.00 per month
EXAMPLE: Market Rent + Premium Charge Amount & Description = $ Amount
e. The six and nine month leases would still require a 60-day written notice prior to lease expiration if a resident is vacating the suite. By Ohio State Law, a month-to-month resident is only required to give a 30-day written notice prior to lease expiration if they are vacating. This 30-day notice policy should already be stated on the MTM Rental Agreement (KD Lease-MTM) that you download in Onesite within the Letters and Notices Tab.
2) MTOM Leases - All residents are required to sign a new Rental Agreement at the time of Lease Renewal. At times the Rental Agreement is changed and modified, these new modifications mean that month-to month residents are also required to sign a new Rental Agreement just as those signing for a year must. A month to month lease is good for twelve (12), one (1) month terms.
a. Since residents know that their Rental Agreement automatically becomes month-to month, some will not come into the office to sign a new lease. If a resident does not sign a month-to month agreement after their current term has expired, send them a “Notice to Month-To-Month Resident” (Form 0808) on the FIRST day of the following month. This letter will require the resident to sign a month-to-month renewal & also again acknowledge their need to now pay a month-to-month fee of $100.00.
i. A CMHA resident cannot go Month to Month, or short term. K&D only accepts 1 year leases from a CMHA resident, if the resident does not want to sign a 1 year lease they will be asked to vacate the suite at the end of their current lease term. If the resident stays beyond the current lease term, you will be required to send them a 30 Day Notice to Vacate
b. If a resident decides to go on a month-to-month lease, you must edit the current proposal to the new lease term. Once you have edited and saved the proposal you must then renew the lease to print the correct renewal lease document. To print the lease, pull up the resident record by choosing the t code or resident name after you have renewed the expiring lease. Note: You must have a current copy of renter's insurance on file or enter an override policy to renew a lease in Yardi.
STEP 5-CREATING/EDITING A PROPOSAL & PRINTING YOUR LEASE RENEWAL PACKET
From the Community Manager Dashboard in Yardi choose either one of the following:
1. Expiring Leases - You will need to your own lease proposal
2. Scheduled Lease Renewals - You may need to Edit the Proposal Term # of months, if
the Resident is choosing a short term lease option
EX: 12 to 12 for Auto Renewing, 1 to 1 for MTOM, 3 to 3 for 3 Month, so on
Choose the appropriate link
Expiring Lease Option Next step, choose Make New Proposal
Enter the terms, verify rental charges then choose Save
Next, fmo the Community Manager Dashboard choose Scheduled Lease Renewals then find the Resident you would like to print a lease renewal packet for and choose their name. You can sort the columns by choosing the header, for example Resident
You will be redirected to the Resident record screen. Next Choose Reports then choose Lease Renewal to print your Renewal Packet
If for some reason you need to print a WORD version of the Lease Renewal Packet you will need to copy
the Resident's t code then go to Reports - Leasing - Renewal Lease
Enter the t code
You will see a prompt at the bottom of your screen choose Open
Your WORD lease will open to update any information. It is imperative you are extremely careful to only
update what it needed. You must keep the integrity of the lease.
NOTE: If you are sending a lease to a Resident via email to sign, NEVER send it in word format.
Instead print the lease then scan it to your email. By doing this, the Resident will not be able to alter
the lease in any way.
STEP 5 – RENEWAL PACKET SIGNING WITH THE RESIDENT
1) All Rental Agreements must be signed in front and by the agent for the owner as witness to the signatures. Renewal Rental Agreements are NEVER permitted to be sent to a resident and returned to the office.
2) All Renewal Rental Agreements must include the signatures of all those listed on the lease as “Signers” of the lease and all current occupants full names must be listed on the lease. Remember to have the resident fill out a new Resident Information Sheet (0807) & immediately input the updated information into OneSite & other relevant Property Information database.
3) After all parties have signed “one original” of all relevant lease documents listed above:
a. Make One Copy of all documents for the Resident as their Copy
b. Keep the Original in the Resident Folder at the Property File
c. Scan & upload the Original Documents into the Resident record than email your Account Specialist letting them know the lease is attached after doing ALL of the below steps:
1. Manager (or designated property representative at certain properties) reviews entire lease to ensure all proper documentation is completed properly and signed.
2. Scan leases into “My Documents” of designated manager’s pc or property shared drive “one at a time”.
3. Open each scanned document in “My Documents”, label them per the example below and save them in a file folder created called “Current Resident Leases”.
a. Property Code-Unit Number-Resident Last Name-Lease Start Date
b. Ex: GMP-N1065-Laderman-1-1-10
4. Upload all leases to the Resident record then email your Corporate Account Specialist the list of leases uploaded, for their review.
5. Attach any needed changes to the current Yardi lease offer “in the body of the email” to alert your Account Specialist of possible edits that may be needed with the resident account/billing.
6. File the original lease in the resident file.
7. Account Specialist reviews the lease (via attachment in Yardi).
8. Account Specialist emails lease back to Property if lease needs corrected.
4) Resident Information Update - The employee who performs the lease renewal signing must update ALL resident information into Yardi. This is done by going to the Person Search located on the Community Manager Dashboard, choose the Resident Name then update all info under the Other Info tab for the main signer, then under Functions-Roommates for additional signer information. Information will be audited closely to monitor who is doing an acceptable job of entering any & all information about our residents.
5) Renewal Checklist (0808) – Carefully review/complete all the items to be completed on the renewal checklist. This Checklist to be used as a “cover page” to ensure all documentation/procedures have been completed. The Checklist items are as follows:
STEP 6 – RENEWING THE RESIDENT IN YARDI
· Once all paperwork has been signed the resident is now need renewed with a new lease as well as in Yardi. You will need to update their Lease Desc for reporting purposes to the Corporate Office
· Choose the name link under Scheduled Renewals (Where you pulled the lease doc from) & open the Resident record