A lease renewal letter is a simple document that gives a tenant the ability to extend their current lease. The tenant and landlord must sign the lease renewal for it to be legally binding. Furthermore, as part of the renewal, the lease may also be amended to include new rules or increases in rent. Tenants who are in good standing with their landlords are generally notified of the upcoming lease renewal within 30 to 90 days of the original lease expiration date. Suitable for residential and commercial properties.
Often, renegotiating a lease is required before it can be renewed which adds complexity. During downturns, tenants may ask for a reduction in rent, and landlords during good times may raise the rent. Make sure you adhere to the steps below when you’d like to renew a lease.
Renters may receive a renewal letter for the lease or be presented with a new lease, depending on the landlord's preference. If the landlord decides to provide a lease renewal letter instead of a new lease, the letter should have the following information.
[Landlord’s City, State]
Dear [Tenant’s Name],
We intend to renew your lease that started on [Original Lease Date] and will terminate on [End Date of Lease]. Because you have shown to be a great tenant to use, we are offering to renew the lease to [Enter Term] at a rate, paid monthly, of [Enter Rent ($) Amount].
If this offer is to your liking, please contact us by [Enter Date].
A letter should be sent 30 days before when the lease is set to terminate. It's up to the landlord to choose the method of sending the letter which can be done personally or using a letter mailing service.
It is expected that the tenant responds within the given timeframe. Keep in mind that they may not agree immediately and send their offer. In this case, work out the details and decide on an agreement that both parties are happy with.
A simple lease agreement may be signed by the tenant and landlord if most of the lease terms are the same as the original. An entirely new lease must be signed if there are many changes, such as the tenant changing, the landlord changing, the tenant moving into a new unit but staying in the same building, etc.
Renewing an agreement is considered a completely new contract, while an extension just extends its end date.
Step 1: Download a copy of the lease renewal
Obtain a copy of the Lease Renewal Agreement by clicking on the download button displayed on this page.
If you’d like to create a custom lease renewal agreement then you can use our document generator - available on this page. Just click the generate button to get started. It only takes a few moments.
Step 2: Add the date of renewal
Like other legal documents, the dates are important. There’s a section where the date the lease renewal comes into should be recorded. This makes it clear for everyone involved and avoids confusion down the line.
Step 3: Identify the landlord who is allowing the renewal
Include the full name of the landlord that’s renewing the tenant's lease. If it’s an organization instead of an individual, add the name of the company instead.
Step 4: Identify the tenant seeking a renewal of the lease
Like when the landlord was identified, it’s important to add the full name of the tenant that will be renewing the lease. If it’s an organization, write the name of the company instead.
Step 5: Record the property address
Of course, the address of the property that will be leased or rented must be included. Include the unit number if it’s a multi-family building and even the county it’s located in to make sure it’s clear where the property can be accessed.
Step 6: Note the original lease
To accomplish this task, refer to the current rental agreement then manually translate the effective date into this article. The original agreement should also be attached so that it’s easy to refer to going forward.
Step 6 - Determine how the extension will happen
The parties involved have already agreed to renew the agreement but there are multiple methods to accomplish that. It can be converted to a month-to-month lease, extended as-is, or have a custom structure. You can indicate it using the options provided. Note that only one of the options may be selected.
Step 7 – Indicate when the renewal goes into effect
It is crucial to include the date when the renewal terms will go into force. You can choose to commence as soon as the original lease is terminated or you can choose to commence on a specific date which can be before or after the termination of the original lease.
Step 8: Include additional terms if applicable
In this document, the lease's conditions can be renewed or amended, if needed. The section for additional terms relates to situations where one or both parties involved in the agreement have altered obligations from the original lease. In other words, you’re making changes to the original lease like, now, you don’t want to allow people to smoke or maybe pets are no longer welcome.
If that’s not the case then you can choose the option that indicates there are no further changes to the lease and move on to the execution.
Step 9 - Sign the document
After all other sections have been completed and both parties have reviewed it, the document can be executed and take effect. The landlord and the tenant must sign this document themselves (or it can be signed for them if they have the proper power of attorney).
The landlord will sign and date and the tenant will sign and date. After that, they should each take an original copy for their records.
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