Lease Renewal Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 2,009 reviews

Jump to Section

Need help with a Lease Renewal Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What Is a Lease Renewal Agreement?

A lease renewal agreement is a legal document between a landlord and tenant to extend the tenant's duration of stay in an apartment. This means that their lease spans beyond its original end date to another fixed time in the future.

It is important to distinguish a lease renewal agreement from a rental lease agreement.

A lease renewal agreement is also known as a lease extension agreement. Typically, the lease lasts for 6-months to 12-months, but some may be 18-months or even 24-months.

However, a rental lease agreement contract tends to last for a much shorter time period, usually 30 to 90 days.

To learn what a lease entails and should include, you may find this article helpful.

When Should I Use a Lease Renewal Agreement?

You (the landlord) should issue a residential lease extension agreement when you want to continue renting your property to the current tenants. This extension will change the expiration date of their lease, extend the period of time they will rent your property, and ensure that both of your best interests are legally protected.

As a general rule, you should issue a lease renewal letter (notice to renew) within 90 days of the tenant’s lease expiration.

There are several critical benefits to renewing a lease with existing tenants, such as:

  • No vacancy costs to pay.
  • Consistent rental income year-round.
  • Have open lines of communication with your tenants.
  • Avoid having to search for and screen new applicants.
  • Avoid turnover costs in your apartment/home.
  • Possibly increase rent through renewal.

There are limits to how much you may raise the rent, but these vary by state. If you wish to increase the tenant’s base rent, you can send them a new offer through an official notice.

Giving someone at least 90 days to determine whether they will pay the new rent — or if they wish to negotiate — will allow both of you to prepare for any potential moves or vacancies.

Please consult this article for more information on lease renewal letters.

Meet some lawyers on our platform

Daehoon P.

46 projects on CC
View Profile

Alen A.

5 projects on CC
View Profile

Craig Y.

5 projects on CC
View Profile

Max M.

66 projects on CC
View Profile

What’s Included in a Lease Renewal Agreement?

Before you sign any contract, you will first need to issue your tenant a lease renewal letter. This letter presents an offer of the rent, terms, and policies the tenant will have to agree to prior to renewing their lease.

If you intend to increase the rent in your offer, you should send a notice of rent increase along with your renewal offer. This should be done at least 90 days before the lease’s expiration to allow tenants to renew or find alternate housing arrangements.

Bear in mind that you must have a tenant’s signed consent before filing any residential lease agreement or commercial lease agreement.

You can never extend someone’s lease or increase their rent without formally notifying them and having them agree beforehand.

This article can help you learn more about the lease renewal process.

ContractsCounsel Lease Renewal Agreement Image

Image via Pexels by RODNAE Productions

How to Write a Lease Renewal Agreement

Learning how to write a lease renewal agreement requires a solid understanding of state and local law and appropriate lease terms and conditions.

Hiring a lawyer to draw a professional contract is best. The typical rental lease agreement cost is $625 throughout the United States.

Suppose you do decide to write your lease renewal agreement. In that case, you should still have a lawyer review the final contract to ensure it is compliant with your state’s landlord-tenant laws.

Element 1. Basic Information

The lease agreement should contain identifying information for the landlord, property management company, any co-owners, and a list of tenants occupying the residence. Additional occupants, such as children or adult dependents, should also be listed.

You can also specify the lease type in this portion of the contract. For example, is it a fixed-term lease, e.g., one year or a month-to-month lease that automatically renews every month until the landlord or tenant ends the agreement?

Element 2. Property Description

A detailed description of the property should include its square footage, any known defects, and any appliances, furniture, and other belongings that the tenant may utilize during their lease but does not have ownership to.

Element 3. Start and End Dates

Clearly print the start and end dates of the lease extension agreement, and specify what measures the tenant may take if they wish to terminate their lease before its expiration. You can also clarify what financial responsibility a tenant may have for the lease if they end it early.

A landlord should also clearly state their right to end the lease early under certain circumstances, such as a tenant violating the terms and policies laid out within the leasing contract.

Element 4. Rent, Utilities, and Amenity Fees

The rental lease agreement should fully disclose how much rent a tenant will be required to pay when they must pay it and the repercussions of paying late.

You should also state who is responsible for paying utility bills. Include any associated amenity fees a tenant may pay to you or the property management company.

Include a complete list of all utilities in the property, as well as any other fees a tenant may have to pay, such as:

  • Pet rent
  • Parking fees
  • Late fees
  • Insufficient fund fees

Element 5. Payment Methods

How will the tenant pay their rent each month? Make sure you clearly state how you will receive rent through a secure online portal, wireless bank transfer, or bank check. It is not advisable to accept cash as a rental payment method unless you issue a written receipt of payment each month.

Element 6. Tenant and Landlord Obligations

Specify the responsibilities a tenant has and yours as their landlord. If your new agreement modifies any existing obligations, this must be added in an addendum to lease contract.

An addendum is a separate document that will provide additional information or changes to a prior lease. The tenant must agree to all the information in the addendum and sign it before they can renew.

You may also clarify any tenant's rights to the property during their lease. For example, how can they handle these proceedings if they are permitted to sublease the apartment or house?

Element 7. Security Deposit

Be sure to clarify if the tenant must pay an additional security deposit to renew and the process for receiving their deposit at the end of their lease.

This should state what circumstances would result in a tenant not receiving their full deposit back, how the funds will be issued, and how long it will take to receive their deposit after moving out.

This article can tell you more about what to include when writing a lease agreement.

When Should I Send a Lease Renewal Letter?

You should send a lease renewal letter at least 90 days before a lease ends. This is the minimum required amount in most states. There are also restrictions on how soon you can send a renewal, typically no more than 150 days before a lease expires.

In some states, the lease renewal period is as little as 30 days, so you should consult with a local attorney to ensure you are within your legal rights as a landlord.

You can use this guide to learn about lease laws by state.

What if the Tenant Wants to Negotiate a Lease Renewal Agreement?

Tenants can openly discuss renewal and negotiate it with a willing landlord. However, suppose you agree to any changes the tenant requests. In that case, you must modify your lease extension agreement to reflect these alterations.

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lease Renewal Agreement Lawyers

View Adam
Member Since:
March 5, 2021

Adam B.

Managing Partner
Free Consultation
Get Free Proposal
San Mateo, California
24 Yrs Experience
Licensed in CA
McGeorge School of Law

Seasoned technology lawyer with 22+ years of experience working with the hottest start-ups through IPO and Fortune 50. My focus is primarily technology transactions with an emphasis on SaaS and Privacy, but I also provide GC services for more active clients.

View Benjamin
Member Since:
March 11, 2021

Benjamin W.

Free Consultation
Get Free Proposal
Los Angeles, CA
7 Yrs Experience
Licensed in CA
UCLA School of Law

I am a California-barred attorney specializing in business contracting needs. My areas of expertise include contract law, corporate formation, employment law, including independent contractor compliance, regulatory compliance and licensing, and general corporate law. I truly enjoy getting to know my clients, whether they are big businesses, small start-ups looking to launch, or individuals needing legal guidance. Some of my recent projects include: -drafting business purchase and sale agreements -drafting independent contractor agreements -creating influencer agreements -creating compliance policies and procedures for businesses in highly regulated industries -drafting service contracts -advising on CA legality of hiring gig workers including effects of Prop 22 and AB5 -forming LLCs -drafting terms of service and privacy policies -reviewing employment contracts I received my JD from UCLA School of Law and have been practicing for over five years in this area. I’m an avid reader and writer and believe those skills have served me well in my practice. I also complete continuing education courses regularly to ensure I am up-to-date on best practices for my clients. I pride myself on providing useful and accurate legal advice without complex and confusing jargon. I look forward to learning about your specific needs and helping you to accomplish your goals. Please reach out to learn more about my process and see if we are a good fit!

View Ema
Member Since:
March 12, 2021

Ema T.

Contract and IP Attorney
Free Consultation
Get Free Proposal
New York, NY
4 Yrs Experience
Licensed in NY
Chicago Kent

I am a NY licensed attorney experienced in business contracts, agreements, waivers and more, corporate law, and trademark registration. My office is a sole member Law firm therefore, I Take pride in giving every client my direct attention and focus. I focus on getting the job done fast while maintaining high standards.

View David
Member Since:
April 1, 2021

David B.

Free Consultation
Get Free Proposal
Trussville, Alabama
26 Yrs Experience
Licensed in AL
Birmingham School of Law

A twenty-five year attorney and certified mediator native to the Birmingham, Alabama area.

View Rebecca
Member Since:
April 6, 2021

Rebecca L.

Free Consultation
Get Free Proposal
San Diego, CA
11 Yrs Experience
Licensed in CA, DC, VA
New England School of Law

I absolutely love helping my clients buy their first home, sell their starters, upgrade to their next big adventure, or transition to their next phase of life. The confidence my clients have going into a transaction and through the whole process is one of the most rewarding aspects of practicing this type of law. My very first class in law school was property law, and let me tell you, this was like nothing I’d ever experienced. I remember vividly cracking open that big red book and staring at the pages not having the faintest idea what I was actually reading. Despite those initial scary moments, I grew to love property law. My obsession with real estate law was solidified when I was working in Virginia at a law firm outside DC. I ran the settlement (escrow) department and learned the ins and outs of transactions and the unique needs of the parties. My husband and I bought our first home in Virginia in 2012 and despite being an attorney, there was so much we didn’t know, especially when it came to our HOA and our mortgage. Our real estate agent was a wonderful resource for finding our home and negotiating some of the key terms, but there was something missing in the process. I’ve spent the last 10 years helping those who were in the same situation we were in better understand the process.

View Samantha
Member Since:
April 15, 2021

Samantha B.

Principal and Founder
Free Consultation
Get Free Proposal
8 Yrs Experience
Licensed in FL, IL
Ave Maria School of Law

Samantha has focused her career on developing and implementing customized compliance programs for SEC, CFTC, and FINRA regulated organizations. She has worked with over 100 investment advisers, alternative asset managers (private equity funds, hedge funds, real estate funds, venture capital funds, etc.), and broker-dealers, with assets under management ranging from several hundred million to several billion dollars. Samantha has held roles such as Chief Compliance Officer and Interim Chief Compliance Officer for SEC-registered investment advisory firms, “Of Counsel” for law firms, and has worked for various securities compliance consulting firms. Samantha founded Coast to Coast Compliance to make a meaningful impact on clients’ businesses overall, by enhancing or otherwise creating an exceptional and customized compliance program and cultivating a strong culture of compliance. Coast to Coast Compliance provides proactive, comprehensive, and independent compliance solutions, focusing primarily on project-based deliverables and various ongoing compliance pain points for investment advisers, broker-dealers, and other financial services firms.

View Pritesh
Member Since:
April 19, 2021

Pritesh P.

Chief Legal Officer
Free Consultation
Get Free Proposal
Chicago, Illinois
14 Yrs Experience
Licensed in IL
Western Michigan University Cooley Law School

Experienced General Counsel/Chief Legal Officer

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call