One of the sweetest deals for a landlord is to have good tenants who pay on time. If that is your situation you may wondering about renewing the lease agreement with those tenants. When it’s time to renew a lease with an existing tenant it’s more than just re-upping for a new year. You will want to get a new lease agreement signed by all parties.
At least 60 days before the lease expiration try to get a commitment from your existing tenants as to their intentions. If they intend to remain in your property, and it makes sense for you, consider signing another annual lease agreement and not simply converting the existing rental agreement to a month-to-month tenancy. Here’s a few tips to organize your activity regarding lease renewals:
- Take the time to review the existing lease agreement, carefully noting the time frame to communicate any changes in the rent amount or other terms. Should you have changes to the terms make sure to communicate those changes to your tenants as early as possible so that they consider their options if the changes are material.
- The Quit and Holdover language is especially important as it dictates the notice requirements for indicating a renewal or conversion to a month-to-month tenancy.
- If renewing for another year (and not converting the existing lease agreement to a month-to-month tenancy), draft a new rental agreement for signing. This new agreement may be almost identical to the original rental agreement, but make sure to change the agreement term dates and the rent amount, if applicable. Also check to make sure that your contact information is correct in the lease agreement and that no other terms have changed.