The Riskiest Situation: Expired Contract, Tenant Still There
More common than assumed: the contract expired months ago, the tenant remains, pays the same amount, and no renewal was documented. It looks stable, so nobody acts.
It is not stable. The loss is double: financial, because the due increase was never applied and compounds monthly, and legal, because the relationship lacks a clear documented basis in any dispute.
Why This Happens
Renewal depends on human memory for an event occurring once every twelve months. Nobody forgets monthly rent because it repeats; everyone forgets a contract signed a year ago.
The Correct Renewal Cycle
- Alert sixty days out — enough time to negotiate or find a replacement
- Renewal decision — at what amount, with the stipulated increase applied?
- Tenant communication — formal offer with documented response
- Ejar authentication — renewal documented like the original
- Installment update — new schedule at the new amount
- Thirty-day alert if undecided
Why Sixty Days Specifically?
A one-week alert leaves no options. If the tenant declines, you need time to market, show, and sign before the unit empties. Sixty days turns expiry from a rushed surprise into a planned decision.
Scheduled Increases
If the contract stipulates an annual increase, schedule it at contract creation, not at renewal. The system should know from day one that the thirteenth installment differs. This turns the increase from something to remember into something that happens.
Two Metrics Worth Tracking
- Renewal rate — a direct signal of tenant satisfaction and pricing fit
- Expired unrenewed contracts with tenant in place — should always be zero