Performing a lease renewal with tenants does not have to be a stressful or complicated process for landlords or property managers. With a comprehensive lease contract in place, the lease renewal is simply a matter of agreeing to a new tenancy term, changing the rent amount, and adjusting any other clauses that might be relevant (such as occupants or pets). We’ve put together a comprehensive guide for investors and landlords on what they need to know to conduct the lease renewal process.
For the official notice, make sure to refer to the current lease. The document will be one to two pages once it is complete. This will include who the agreement is being made between and the full property address.
Pro Tip: Many landlords put their home under an LLC and use virtual mailboxes as their mailing address. See our article on The Framework for Starting Solid Rental Management here.
Here is what the renewal document should contain:
1. Lease Extension Date
The new end date for the lease and whether it will terminate or go month-to-month after that date.
2. Rent Adjustment
Renewal term, rent percentage increase, and new rent amount. Don’t leave any room for ambiguity!
3. Other Changes to Terms
Any other terms that may be changing from the original lease.
Another pro tip: Use a service like Hemlane to give you access to other legal templates and esignature capabilities.