Jump to Section
A lease renewal agreement is a lawfully binding contract extending the term of an existing lease agreement between a tenant and a landlord or a property owner. This agreement offers certainty and clarity for both parties involved, summarizing the terms and conditions of the renewed lease agreement. In this blog post, we will discuss the different aspects of a lease renewal agreement, its essential components, and the importance of a well-drafted lease renewal agreement.
Essential Elements of a Lease Renewal Agreement
Some key elements of a lease renewal agreement are as follows:
- Defining Property Description: The lease renewal agreement must accurately define the rental property, including its permanent address and distinguishing features that set it apart from other commercial or residential properties.
- Stating Renewal Terms: The lease renewal agreement should clearly state the duration of the renewed lease, including the specific start and end dates. It is important to explicitly mention whether the renewal is for a fixed term or month-to-month basis.
- Outlining Rent and Payment Terms: The agreement should outline the amount of rent for the renewed lease term and specify the frequency of rent payments. It should also indicate any changes to the rent, such as an increase or decrease, and explain the acceptable payment methods.
- Specifying Maintenance and Repairs: The agreement should clearly define the responsibilities of the landlord and tenant regarding maintenance and repairs. It includes specifying which party is accountable for particular repairs, routine maintenance tasks, and the process for reporting and addressing maintenance issues.
- Including Termination and Renewal Terms: The lease renewal agreement must include key termination and renewal notice provisions. It should specify the timeframe within which either party must give notice if they intend to terminate or renew the lease at the end of the renewal term.
- Addressing Amendments and Addendums: The agreement should address any changes or additions to the original lease, explaining the terms of these modifications and how they impact the renewed lease.
Benefits of a Lease Renewal Agreement
Property owners who handle their properties can utilize online lease templates to fill out the necessary information. However, property managers or owners should consult a local attorney to verify the document's accuracy before sending it to the tenant. Below are some points that specify the importance of a lease renewal agreement.
- A lease renewal agreement usually functions as a clear and comprehensive summary of the rules for the lessee, as well as the obligations of both the lessor and the tenant. Unlike many agreements that can be made verbally, a lease renewal letter must be in writing to hold legal weight.
- Without a lease renewal form, tenants will lack clear guidance regarding their continued stay in the property. The lease renewal agreement acts as a guiding document that allows both the lessee and the landlord to agree on the same provisions and move forward accordingly.
- Renewing a lease allows landlords to retain their best tenants on flexible terms and ensure timely rent collection. Landlords typically prefer cooperative tenants capable of fulfilling primary property maintenance responsibilities.
- By utilizing lease renewal agreements, landlords can minimize the risk of prolonged vacancies that may convey a negative impression on the market. Also, landlords can create and finalize lease renewals on the same day if the tenant approves the offered terms and agrees to sign the document.
How to Draft a Lease Renewal Agreement
Below are the steps required to draft a legally valid lease renewal agreement:
- Evaluating the Existing Lease Agreement: The initial step in preparing a lease renewal agreement is carefully examining the current lease's important provisions. Familiarize yourself with the terms and conditions, such as lease duration, rental amount, maintenance responsibilities, and other relevant terms. It will establish the groundwork for the renewal agreement and help identify areas that require revision or updating.
- Initiating Communication with the Tenant: Initiate a conversation with the tenant before the lease expiration date. Inquire about their interest in renewing the lease and address any concerns or questions they may have. Establishing open lines of communication is important for ensuring a smooth lease renewal process.
- Assessing Market Conditions: Research the prevailing rental market conditions in your area. This step will aid in determining whether a rent increase is justified or whether the existing rental rate should be maintained. Consider factors such as market demand, property value, inflation, and any improvements made to the property since the original lease agreement.
- Negotiating Terms and Conditions: This may involve discussing the rental rate, lease duration, renewal options, maintenance responsibilities, and other relevant clauses.
- Preparing the Renewal Agreement: It is time to draft the lease renewal agreement once the negotiations are concluded. Include both parties' names and contact information, the property's address, the renewal term, and the rental amount. Additionally, incorporate any revisions or updates agreed upon during the negotiation process.
- Including Necessary Clauses: To safeguard the interests of both parties, consider incorporating specific clauses into the renewal agreement. These may include clauses about maintenance responsibilities, penalties for late payments, subletting, pet policies, and termination conditions. These clauses should be clear, concise, and according to the applicable laws.
- Sharing the Draft: The next step is to share the draft renewal agreement with the tenant for review. Also, you must encourage them to read and comprehend all the terms and conditions thoroughly. Address any questions or concerns they may have before finalizing the agreement. Once both parties are satisfied with the terms, sign the lease renewal agreement to establish its legal validity.
- Retaining Copies: After signing, make copies of the lease renewal agreement for the landlord and tenant. Keep the original document in a safe and easily accessible place. It ensures both parties have documented evidence of the renewed lease and its terms.
Key Terms for Lease Renewal Agreements
- Lessor: The individual who owns the property or acts as the landlord and grants the lease to the tenant.
- Duration: The length of time the lease agreement covers, including the initial term and any possible extensions.
- Rent Adjustment: A clause in the lease renewal agreement that permits the landlord to increase the rent for the renewed lease term.
- Notification Period: The designated timeframe within which the landlord or the tenant must give prior notice to express their intention to extend or terminate the lease.
- Deposit: A refundable sum of money paid by the tenant to the landlord, serving as a safeguard against potential damages or unpaid rent throughout the lease term, carried forward to the renewed lease.
- Terms and Conditions: The specific terms, provisions, and regulations that govern the lease renewal, encompassing any modifications or additions made to the original lease agreement.
Final Thoughts on Lease Renewal Agreements
A lease renewal agreement is a necessary document that facilitates the extension of a tenant's stay in a rental property. Also, by clearly defining the terms and conditions of the renewed lease, a lease renewal agreement provides safety and stability for both owners and tenants. Ensuring that the renewal agreement contains all the necessary components and is well-drafted is essential for maintaining a positive landlord-tenant relationship and avoiding potential disagreements.
If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.
Need help with a Lease Renewal Agreement?
Meet some of our Lease Renewal Agreement Lawyers
Jeremiah C.
Creative, results driven business & technology executive with 24 years of experience (15+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.
Nicholas M.
Nicholas Matlach is a cybersecurity expert (CISSP) and an attorney who is dedicated to helping small businesses succeed. He is a client-focused professional who has a deep understanding of the challenges that small businesses face in the digital age. He also provides legal counsel to small businesses on a variety of issues, including formation, intellectual property, contracts, and employment law.
Fabian G.
Fabian graduated with honors from the University of Miami School of law, where he served as the articles and comments editor for the law school's Race and Social Justice Law Review. He received the John F. Evans Memorial Scholarship Award for excellence in the university's Litigation Skills Program and the HOPE Pro Bono award for completing more than one hundred (100) pro bono hours. Additionally, he received the CALI Excellence for the future award in Sports Law. He focuses his practice on corporate, real estate and immigration matters. Fabian has experience representing luxury hotel owners and operators in connection with the drafting of hotel management agreements, restaurant license agreements, and complex restaurant leases for domestic and international projects including: Nobu Tulum, Nobu Punta Cana, Nobu Orlando, Nobu Chicago and the Nickelodeon Hotel in Riviera Maya, Mexico, among others. He has represented clients in the commercial real estate industry in connection with the drafting of purchase and sale agreements, promissory notes, and mortgages. Lastly, Fabian routinely counsels corporate clients in connection with the drafting of articles of organization, operating agreements, and other documents related to acquisitions, restructurings and investments.
Scott S.
Scott graduated from Cardozo Law School and also has an English degree from Penn. His practice focuses on business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, data security and compliance. While he's worked with large, established companies, he particularly enjoys collaborating with startups. Prior to starting his own practice in 2011, Scott worked in-house for over 5 years with businesses large and small. He also handles real estate leases, website and app Terms of Service and privacy policies, and pre- and post-nup agreements.
Gamal H.
I am a commercial contracts attorney with twenty years of experience. I have represented major corporate clients including Amazon, Marvel, and Viacom as well as independent entertainment professionals and technology startups.
October 28, 2021
Oscar B.
Oscar is a St. Petersburg native. He is a graduate of the University of Florida and Stetson University, College of Law. A former US Army Judge Advocate, Oscar has more than 20 years of experience in Estate Planning, Real Estate, Small Business, Probate, and Asset Protection law. A native of St. Petersburg, Florida, and a second-generation Gator, he received a B.A. from the University of Florida and a J.D. from Stetson University’s College of Law. Oscar began working in real estate sales in 1994 prior to attending law school. He continued in real estate, small business law, and Asset Protection as an associate attorney with the firm on Bush, Ross, Gardner, Warren, & Rudy in 2002 before leaving to open his own practice. Oscar also held the position of Sales & Marketing Director for Ballast Point Homes separately from his law practice. He is also a licensed real estate broker and owner of a boutique real estate brokerage. As a captain in the US Army JAG Corps, he served as a Judge Advocate in the 3rd Infantry Division and then as Chief of Client Services, Schweinfurt, Germany, and Chief of Criminal Justice for the 200th MP Command, Ft. Meade, Maryland. He is a certified VA attorney representative and an active member of VARep, an organization of real estate and legal professionals dedicated to representing and educating veterans. Oscar focuses his practice on real small business and asset protection law.
October 28, 2021
Rachael D.
We help simplify every transaction and provide a superior level of customer service to create long lasting and trusted relationships with our clients. Our goal is to guide our clients with practical and zealous legal representation and eliminate the difficult nature of any legal transaction.
Find the best lawyer for your project
Browse Lawyers NowLandlord Tenant
Lease Renewal Agreement
Ohio
Can a tenant renew the lease?
I am currently renting a property under a lease agreement that is set to expire soon. I am interested in continuing to rent the property for another term, but I am unsure if I have the legal right to renew the lease or if I need to negotiate a new lease agreement with my landlord. Therefore, I would like to seek the advice of a lawyer to clarify my options for continuing my tenancy.
Jeffrey K.
You need to review your lease agreement. There may be a section that discusses renewal. Some leases are silent, other contemplate automatic renewal and others will have a specific renewal procedure. If your lease has no renewal language, the lease will terminate at the end of the term. If that is the case, you should speak to your landlord about entering into a new lease, whether under the same terms or different terms. If the lease renews automatically, you most likely have to do nothing (if there is a procedure in the automatic renewal language, follow that procedure). If there is a specific procedure to renew, you must follow that procedure. Your lease may also state that if you remain in the property after the lease expires you will be treated as a month-to-month tenant and the terms of your lease (include rent rate) will remain. The landlord or tenant in that case can terminate the month-to-month tenancy with 30 days notice from the date the rent is due. If your rent is due July 1, 2023 and, as a month-to-month tenant, you want to move out, you would notify your landlord in writing on July 1, 2023 that July is the last month you are renting from him and you will be moving out on July 31, 2023. Likewise the landlord can notify you on July 1, 2023 that July is your last month or could change the terms (such as a rent increase) effective August 1, 2023 because the tenancy is month-to-month. There is also the possibility that you would not be considered a month-to-month tenant, but a "holdover tenant". Again, check the lease for these terms. If you are a holdover tenant, the landlord would include in the lease a rental increase for holdover tenants. This is still technically a month-to-month tenancy but on more expensive terms and the landlord most likely will want you out. Check your lease for renewal provisions and follow them. If you have questions, speak to your landlord. Open communication is important in situations like this.
Need help with a Lease Renewal Agreement?
Real Estate lawyers by top cities
- Austin Real Estate Lawyers
- Boston Real Estate Lawyers
- Chicago Real Estate Lawyers
- Dallas Real Estate Lawyers
- Denver Real Estate Lawyers
- Houston Real Estate Lawyers
- Los Angeles Real Estate Lawyers
- New York Real Estate Lawyers
- Phoenix Real Estate Lawyers
- San Diego Real Estate Lawyers
- Tampa Real Estate Lawyers
Lease Renewal Agreement lawyers by city
- Austin Lease Renewal Agreement Lawyers
- Boston Lease Renewal Agreement Lawyers
- Chicago Lease Renewal Agreement Lawyers
- Dallas Lease Renewal Agreement Lawyers
- Denver Lease Renewal Agreement Lawyers
- Houston Lease Renewal Agreement Lawyers
- Los Angeles Lease Renewal Agreement Lawyers
- New York Lease Renewal Agreement Lawyers
- Phoenix Lease Renewal Agreement Lawyers
- San Diego Lease Renewal Agreement Lawyers
- Tampa Lease Renewal Agreement Lawyers
ContractsCounsel User
Commercial lease agreement
Location: Arizona
Turnaround: A week
Service: Contract Review
Doc Type: Lease Agreement
Page Count: 8
Number of Bids: 4
Bid Range: $400 - $800
ContractsCounsel User
Lease Agreement Review
Location: New Mexico
Turnaround: Less than a week
Service: Contract Review
Doc Type: Lease Agreement
Page Count: 25
Number of Bids: 10
Bid Range: $299 - $899
related contracts
- Addendum to Lease
- ALTA Statement
- Apartment Lease
- Apartment Rental Agreement
- Assignment of Lease
- Boundary Line Agreement
- Brokerage Agreement
- Building Contract
- Building Lease
- Business Office Lease Agreement
other helpful articles
- How much does it cost to draft a contract?
- Do Contract Lawyers Use Templates?
- How do Contract Lawyers charge?
- Business Contract Lawyers: How Can They Help?
- What to look for when hiring a lawyer