Lease Renewal Agreement
Lease ending and you want to keep a good tenant? A lease renewal extends the term, resets the rent, and saves you the cost of turnover. Free in all 50 states.
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A lease renewal is an agreement to extend a lease for a new term when the current one ends. As the landlord, you use it to keep a good tenant, usually with updated rent or terms. The tenant signs to continue, so unlike a notice, a renewal takes both signatures.
Key takeaways for landlords
- It keeps a good tenant: renewing beats the cost of a turnover.
- Both sign: a renewal is an agreement, not a one-way notice.
- Set the new rent now: renewal is when you adjust rent for the next term.
- Decide early: leave time before the term ends to renew or not.
- Silence has a default: do nothing and the lease often rolls to month-to-month.
How to write a lease renewal
The whole job, start to done.
- 1
Reference the original lease
Identify the lease you are renewing by its date and the property address, so the renewal clearly attaches to it.
- 2
Set the new term dates
State the start and end dates of the new term, usually a year from the current end date.
- 3
State the rent for the new term
Give the rent that applies during the renewal, whether it is the same or higher. Be specific about when it starts.
- 4
List any changed terms
Spell out anything new, such as a pet rule or parking change, that applies for the renewal term.
- 5
Confirm the rest carries over
State that all other terms of the original lease stay in force, so nothing is left ambiguous.
- 6
Sign before the current term ends
Have both parties sign and date the renewal before the old term expires, and give the tenant a copy.
Lease renewal agreement
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Most popularWhat if it's not that simple?
The situations that actually trip people up.
What if the tenant stayed after the lease ended and I never sent a renewal. What are we now?
In most states, a month-to-month tenancy. Once the term ends and you keep accepting rent, the lease holds over on its old terms, except that it now runs month to month. You can still offer a formal renewal to lock in a new term.
Can I refuse to renew for any reason?
Mostly, yes. You cannot refuse for a discriminatory or retaliatory reason, and in a just-cause state you need a lawful ground.
What if my lease has an auto-renewal clause. Does it just renew itself?
Not always cleanly. Evergreen clauses can extend a lease on their own. But several states require you to give the tenant advance notice before an automatic renewal takes effect, and some limit the renewal term. Miss the notice and the auto-renewal may not bind.
Can I raise the rent a lot at renewal?
A renewal is a rent increase, so the same rules apply. Where there is no rent cap, you can set the new rent freely. But California, Oregon, and Washington cap the yearly increase, and many cities add rent control. A steep jump right after a tenant complaint can also look retaliatory, so keep the increase defensible and give proper notice.
What if the tenant wants to renew, but I already promised the unit to someone else.
Be careful what you put in writing. Until you sign the renewal, you are generally not bound, but a clear written offer the tenant accepted can itself create a binding agreement.
How a lease renewal works
A lease renewal keeps a tenancy going on your terms. When a fixed term is ending, a renewal extends it for another set period, usually a year. It locks in the rent and rules for that time. Renewing a good tenant is almost always cheaper than a vacancy, a turn, and a new standard lease with an unknown.
A renewal is a two-way agreement. Both you and the tenant sign, which is what separates it from a notice you serve. You are offering to continue, and the tenant is accepting. If either side does not want to go on under the new terms, the renewal simply does not happen.
Renewal is the moment to reset the rent. You can keep it flat to hold a reliable tenant. Or raise it toward market with a rent increase letter or the new figure written into the renewal itself. To change the rent in the middle of a term instead, you need a signed rent amendment, not a renewal. Decide the number before you send the offer.
Use the renewal to fix what the old lease got wrong. You can update the pet rule, the parking, or the occupants as a condition of the new term. For a change to an ongoing lease you are not renewing, use a lease amendment. At renewal, the new terms simply go into the new agreement.
Decide early, not on the last day. Give yourself enough runway before the term ends to make the offer, let the tenant consider it, and sign. Many landlords send a renewal offer 60 to 90 days out. That window also leaves time to market the unit if the tenant declines.
Know what happens if nobody acts. In most states, if the term ends and the tenant stays with your consent, the lease rolls to a month-to-month tenancy on the old terms. That is fine if you want flexibility. It also means your chance to lock in a new rent for a full year has passed.
Renewal is also a decision not to renew. If you want the unit back or a different tenant, you let the term end and give any non-renewal notice your state or lease requires. A lease termination or non-renewal notice handles that. Just-cause states limit when you can decline to renew at all.
Keep it simple and signed. Reference the original lease, state what is changing and what carries over, and have both parties sign before the current term ends. A renewal signed late, or left on a handshake, is where disputes over the new rent and terms begin.
What a lease renewal includes
· A reference to the original lease: by its date and address.
· The parties and property: you, the tenant, and the unit.
· The new term: the start and end dates.
· The rent for the new term: flat or increased.
· Any changed terms: what is different this time.
· What carries over: the rest of the lease, unchanged.
· Signatures: both parties sign and date.
Your options when a lease is ending
Renewing is really one of four choices. Here is what each one takes: the document to use, and the notice it needs.
| Your goal | What you do | The document | Notice to the tenant | Best when |
|---|---|---|---|---|
| Keep the tenant, same terms | Renew for a new fixed term | Lease renewal | None; sign before the term ends | A reliable tenant and a stable market |
| Keep the tenant, higher rent | Renew and raise the rent | Lease renewal, or a rent increase letter | Your state's rent-increase notice | Rent is below market and the tenant is worth keeping |
| Keep your flexibility | Let it roll to month-to-month | Nothing, or a short month-to-month note | None; it converts on its own | You may sell, renovate, or move in soon |
| Take the unit back | Do not renew | Non-renewal or termination notice | Varies by state; some require 30 to 60 days | You want a different tenant or the unit yourself |
Lease renewal FAQ
How far in advance should I send a renewal?+
Does the tenant have to sign?+
Can I change the rent in a renewal?+
Is a renewal the same as a new lease?+
What if the tenant does not respond?+
Do I have to offer a renewal?+
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