Lease Renewal (Extension) Agreement

A lease renewal allows a tenant to prolong a current lease past its scheduled end date. The renewal is only legally binding after it has been signed by both the landlord and tenant. In addition to the extension, the renewal may also make other changes to the lease such as increasing the rent or add rules of the property. If the landlord and tenant are in good standing with one another, a renewal letter is commonly sent to the tenant within 30 to 90 days before the original lease terminates.

May be used for residential and commercial property.

Table of Contents

How to Renew a Lease

Renewing a lease isn’t always easy for the landlord or tenant since it often requires renegotiating the lease. During good economic times, the landlord may increase the rent and during downswings, the tenant may ask for a decrease. Follow these steps to properly give notice to the other party about your intention to renew your lease and remain on the property.

Step 1 – Write Notice

Depending on the landlord’s preference, a simple lease renewal may be sent to the tenant or the landlord may decide to re-write an entirely new lease agreement to the tenant. If the landlord decides on the latter, a letter should be sent to the tenant stating the following:

LETTER OF INTENT TO RENEW LEASE

 

[Landlord’s Name]
[Landlord’s Address]
[Landlord’s City, State]
[Landlord’s Zip]

[Date]

Dear [Tenant’s Name],

It is our intention to renew your lease dated [Original Lease Date] that will end on [End Date of Lease]. You have shown to be a model tenant and would offering to renew your lease for an additional [Enter Term] at the monthly rental rate of [Enter Rent ($) Amount]

If you accept this offer, please contact our office by [Enter Date].

Sincerely,

[Landlord’s Signature]

Step 2 – Send Notice

It’s recommended to send the letter at least 30 days before the expiration date. The landlord may send the letter themselves or use websites like MailaLetter.com ($1.99 for 1-page).

Step 3 – Wait for the Tenant to Respond

The tenant will be required to respond within the timeframe outlined in the letter. Depending on circumstances, the tenant may decide to make a counter-offer to the landlord. If so, it may be better to schedule a meeting with the tenant to come to terms and come to a verbal agreement.

Step 4 – Write the New Lease

If the terms of the lease are mostly the same as the original, a simple 1-page lease renewal agreement may be signed by the parties. If the new lease has many changes, i.e. a tenant has changed, the landlord has changed, the tenant has moved to a new unit in the building, etc. a new lease agreement should be authorized amongst the parties.

Renewal vs Extension

A renewal is treated legally as an entirely new agreement where an extension is simply prolonging the end date of the original agreement.

Actions Renewal Extension
Extending the Lease Term Recommended Recommended
Increasing Rent Recommended Not recommended
Adding Terms & Conditions Recommended Not recommended

Notice to NOT Renew a Lease

Lease Non-Renewal Letter – To inform a tenant that the landlord does not wish to renew the lease agreement.

Download: Adobe PDF, MS Word, OpenDocument

 

 

 

Sample Lease Renewal Agreement

Download: Adobe PDF, MS Word (.docx), OpenDocument

How to Write a Lease Renewal Agreement

Download: Adobe PDF, MS Word, OpenDocument

Step 1 – Download the Lease Renewal Agreement Template From This Page

The “Adobe PDF,” “MS Word,” and “OpenDocument” links in this section each allow a download of the form needed to issue a Lease Renewal Agreement (as the file type indicated by the labels). There will be a button labeled to correspond with each of these items that will also allow a download of this template as a “PDF,” “Word,” and “ODT” file presented with the featured preview image.

Step 2 – Attach The Lease Renewal Date Through This Form

The document being developed must be given an official date to aid both Parties in keeping track of their new agreement. The two available spaces in Article “I. The Parties” expect the month and calendar day then the two-digit year when this paperwork goes into effect produced for display on either side of the numeral “20.” 

 

Step 3 – Name the Landlord Allowing The Renewal

Naturally, the first article will seek two identify both Parties participating in this renewal. The Landlord who has determined the Tenant can extend the current lease they share must be named just after the “Landlord” label. Continue identifying the Landlord by recording the mailing address where the Landlord receives notices and other official correspondence regarding the concerned property and this agreement.

 

Step 4 – Identify The Tenant seeking To Renew The Lease

Document the full name of the Tenant choosing to renew his or her lease will the Landlord above on the final blank line in Article “I. Parties”. This area is found just after the word “Tenant.”

 

Step 5 – Document The Location Of The Concerned Rental Property

The leased property at the heart of this renewal must be clearly identified for this document to function properly. Thus, continue to the second article, labeled “II. Premises,” then present the physical address where the leased property is located. This address must enable a Reviewer to view and access the concerned premises. 

 

Step 6 – Discuss The Lease Generating This Renewal

Item “III. Lease” is set to attach the original rental agreement shared by the Renewal Parties to this document. This task can be accomplished by referring to the rental agreement being renewed then transcribing its effective date to this article. Two blank lines have been provided so that the month, two-digit calendar day then two-digit year listed in the original lease as the effective date can be reported in “III. Lease.” 

 

Step 7 – Define How The Extension Will Occur

While the Renewal Parties (Landlord and Tenant) will have agreed to renew the current rental agreement, the method by which this renewal is set must be specified. Article “IV. Extension Period” provides three checkbox statements enabling an efficient report on this transition to be documented. Bear in mind, that only one of these items may be selected. If the current lease will be extended for a certain amount of time as-is then select the first checkbox choice in “IV. Extension Period.” This will keep the current agreement’s terms consistent throughout the renewal and will require the number of “Days,” “Months,” or “Years” of this renewal’s lifespan produced on the blank line after the label “Extending.” Make sure to check one of the three checkboxes (“Days,” “Months,” or “Years”) to indicate the time unit when discussing the number just reported.  The current lease may be renewed but without a fixed term. That is, this renewal can occur while “Converting The Lease To A Month-To-Month Rental Agreement.” If this is the case, then select the second checkbox statement in the “IV. Extension Period.”  Notice that since a month-to-month arrangement can be terminated at will, the second renewal option will also require that a predetermined number of days be named as the length of time one Party must give the other as notice before terminating the converted agreement. Therefore, if the second option has been selected, the number “Days’ Notice” required from the terminating Party must be entered on the blank line provided. Be advised that if this number of days differs from the minimum required by the State governing this renewal, then the greater of these numbers will be used as the minimum number of “Days’ Notice” that must be provided by the terminating Party.  If neither of the first two options in “IV. Extension Period” adequately define the terms of the concerned original lease agreement’s renewal, then select the third checkbox in this section (labeled with the word “Other”). The empty line in this choice allows a direct report to be made or for an attachment with the specifics of this renewal to be named by title.      

 

Step 7 – Establish This Renewal’s Start Date

Naturally, an exact date when the renewal terms take effect should be included in this paperwork. The sixth section designated as “VI. Other Terms” enables this to be put in writing by requesting that one of its statements is selected as a definition to the commencement date of the renewal. The renewal date can be set to commence automatically upon the termination of the original lease by selecting the checkbox labeled “When The Lease Ends.”   Select the second checkbox in “V. Start Date,” if a date other than the original lease agreement’s termination date must be set for this renewal’s commencement. For instance, if the Tenant is in the armed services and will be off-premises for a certain pre-approved length of time, the Landlord may set a future date for the Tenant to assume the lease responsibilities by entering it after the phrase “The Date Of…”  

 

Step 8 – Include Additional Renewal Terms As Needed

This document can renew the original lease’s conditions, or it can be used to amend some of these conditions if necessary. Article “VI. Other Terms” has been provided in case either or both of the Renewal Parties must meet different responsibilities from those imposed in the original lease agreement. An example of such a change can be observed if the Tenant has obtained an approved pet, will submit a pet deposit, and will agree to pay a pet rent during the renewal period. If any such changes in responsibilities are to take place during the renewal period, then mark the checkbox labeled “To Further Amend The Lease…” then use the blank lines to declare exactly what new provisions will apply. If more room is needed, then either insert more lines to accommodate a full report or place such changes in an attachment and cite it by title on these lines.  If the lease will be renewed with the original provisions then, select the checkbox corresponding to the words “To Not Further Amend The Lease.”  

 

Step 9 – Provide The Landlord’s Executing Signature

The Landlord named in the first article must sign the “Landlord’s Signature” line to approve and enter the renewal agreement defined above. Once this task is completed, he or she should continue to the adjacent “Date” line then document the month, day, and year when he or she signed this paperwork.  

 

Step 10 – Produce The Tenant’s Signature To Complete This Renewal

If the Tenant wishes to agree to the renewal terms above and agrees to the terms and conditions in this document, then he or she must sign the “Tenant’s Signature” line as well as deliver the “Date” of his or her signature to the appropriately labeled lines at the end of this document.