Landlord's Guide to Lease Renewals

Is it time to renew the lease agreement you have with your tenant? 

There are specific steps you’ll need to take when you’re trying to retain tenants and renew your lease. Keeping turnover and vacancy low is an important part of your strategy for increasing Return on Investment (ROI). 

Here’s what we can tell you: state the lease renewal process early and document everything.

Timeline for Lease Renewals or Notices to Vacate

Your lease should indicate how much notice a tenant needs to give before vacating the property or renewing the lease. Planning ahead is critical. You don’t want to suddenly realize the lease ends in two days. Set a calendar reminder at least two months out that you’ll need to begin discussions with your existing tenant about whether they mean to stay or leave.

Typically, a lease agreement will have a 60-day requirement for notifications. If a tenant plans to move out, you’ll want to be notified in writing 60 days ahead of the end of the lease. If they decide they want to renew, you’ll need to put together a new and updated lease. If there’s lease renewal paperwork required by the HOA or community association, don’t forget to leave time to manage that process as well. 

Conduct a Walk-Through Lease Renewal Inspection 

Do you really want to renew the lease agreement with your current tenant? 

Usually, we recommend you offer a lease renewal to any tenant who is paying rent on time, taking good care of the property, and following the terms of your lease. 

You cannot know what your property looks like unless you get inside. Before agreeing to a lease renewal, perform a full walk-through and inspection. This is your opportunity to check for any deferred maintenance issues or unreported repairs. If your tenants are taking good care of the home, of course you’ll want them to stay in place for another year. 

Review and Adjust Your Lease Agreement

Are there any updates you’ll need to make to the lease? 

Your lease agreement is the most important document governing the relationship with your tenant. In your lease, you’ll spell out all of your responsibilities and expectations for the tenancy. 

You can most likely keep the new lease similar to what the original lease stated, unless there are new requirements or state and local laws that require certain language or additional disclosures to be included in the agreement. 

Review any updates with your tenants before you send it to them for signature. 

Rental Increases and Lease Renewals