A lease renewal agreement is a document that allows a landlord to extend the current rental period with a tenant. Landlords send this agreement to tenants before the original lease expires to clarify the new arrangement. It allows for renegotiation of terms, such as rent increases or new tenant amenities, while maintaining the core terms of the original lease.
In most states, landlords must give their tenants advance notice of renewal (or non-renewal) intent within a certain amount of time before the lease expires.
When to Use
- When landlords want to continue renting their property to current tenants.
- When the original lease term is about to expire, both parties agree to extend the lease.
- When there are updates or changes in the lease terms, such as rent adjustments or new policies.
- When tenants have a good rental history and the landlord wants to maintain a positive relationship.
- When it’s more beneficial to renew with the current tenant rather than finding a new one.
How to Renew a Lease
Step 1 – Send Notice
The landlord should send a letter of intent to renew the lease to their tenant. They can include new terms and propose a new lease duration. They can allow the tenant time to respond.
Step 2 – Negotiate the Terms
In most cases, the landlord decides whether to renegotiate the lease. The tenant can request amendments as a bonus for renewing the lease. Ultimately, it is up to the landlord’s discretion whether to make changes to the original terms.
Once the tenant and landlord agree on new terms, the landlord can include them in the lease renewal agreement.
If both parties agree to keep the same terms, the lease renewal should mention that the original lease agreement remains unchanged and in “full force and effect.”
Step 3 – Gather the Important Documents
Typically, a lease renewal does not require additional legal documents, but you should still have the following in writing:
- A copy of the original lease agreement
- The new rent amount
- Changes to the terms and conditions
- The end date of the old lease and the start and end dates of the new lease period
Step 4 – Sign the Lease Renewal Agreement
Once the landlord and tenant agree on the new lease renewal, both parties should read over and sign the form.
Ensure everyone understands the new arrangement and keep a copy of the renewed agreement.
A landlord or tenant can also use a lease renewal agreement to change the structure of an existing lease after it ends. For example, tenants considering a switch to a short-term lease or a month-to-month lease agreement can set up new amendments without restarting the rental application process.
What Should a Lease Renewal Agreement Include?
When renewing a lease, it is crucial to understand the terms outlined in the renewal document thoroughly. Here are the key elements that should be included in a lease renewal agreement:
- Parties Involved: Clearly state the names and addresses of both the landlord and the tenant(s).
- Original Lease Reference: Reference the original lease agreement, including the date it was signed and any amendments made to it.
- Extension Term: Specify the new lease term, including the start and end dates of the extension period.
- Rent Amount: Indicate the rent amount for the renewal period, specifying if it will remain unchanged or if there will be an increase.
- Security Deposit: State whether an additional security deposit is required or if the existing deposit will suffice.
- Additional Provisions: Include any new terms or modifications to the original lease agreement that will apply during the renewal term.
- Effective Date: Clearly state when the terms of the renewal will become effective.
- Continuity of Original Lease: Affirm that all terms and conditions of the original lease remain in full force and effect unless expressly modified in the renewal agreement.
- Governing Law: Specify the state laws that will govern the renewal agreement.
- Signatures: Ensure that the renewal agreement is signed by both the landlord and the tenant(s) to be legally binding.
Lease Renewals vs. Lease Extensions
As you approach the end of your rental agreement, it’s crucial to understand the difference between a lease renewal and a lease extension to avoid misunderstandings.
A lease extension continues the existing lease beyond its original expiration date, generally maintaining the same terms. Learn more about lease extensions here. Alternatively, a lease renewal is essentially a new contract, allowing you to change the lease terms if necessary.
| Feature | Lease Extension | Lease Renewal |
|---|---|---|
| Nature | Continuation of the existing lease | New contract |
| Terms | Generally the same as the original lease | Can be modified |
| Duration | Typically short-term | Can be long-term |
| Rent Changes | Usually remains the same | Can be renegotiated |
| Tenant Responsibilities | Generally unchanged | Can be updated |
To renew the lease, you and the tenant agree to a new document. You could risk losing a good tenant if the tenant does not agree to the new lease’s terms. In this case, a lease extension may be a better option.
State Renewal/Non-Renewal Notice Laws
State and local laws often define how far in advance a landlord must provide notice of intent to renew or not renew before the lease expires (see table below).
However, best practices are to state your intent at least 60 days before the lease end date (unless state or local law requires notice sooner).
| State | Advance Notice of Renewal and Non-Renewal (Termination) of Lease | Citation |
|---|---|---|
| Alabama | None (yearly/fixed tenancies) 30 days (month to month tenancies) |
Alabama Code § 35-9A-441 |
| Alaska | None (yearly/fixed tenancies) 30 days (month to month tenancies) |
Alaska Stat. § 34.03.290 |
| Arizona | None (yearly/fixed tenancies) 30 days (month to month tenancies) |
Arizona Rev. Stat. § 33-1375 |
| Arkansas | None (yearly/fixed tenancies) 30 days (month to month tenancies) |
Arkansas Code § 18-17-704 |
| California | 60 days (yearly/fixed tenancies where tenant has lived at least one year) 30 days (yearly/fixed tenancies where tenant has lived less than one year) 30 days (month to month tenancies) |
California Civ. Code §§ 1946-1946.1 |
How to Write (Fill Out) a Lease Renewal Agreement
A lease renewal agreement is essentially new, so following the correct steps to complete the form is essential.
Before you fill out your lease renewal agreement, note the state relevant to the lease.
Step 1 – Enter the Date of the Agreement
1. Date of Agreement. Provide the date of the lease renewal agreement.
Step 2 – Write Landlord and Tenant Information
2. Landlord Information. Enter the full landlord’s name and address. Note that this address isn’t the address of the leased property.
3. Tenant Information. Enter the name and address of each tenant.
Step 3 – Fill in the Original Lease Details
4. Date of Original Lease Agreement. Write the date of the original lease period.
5. End Date of Original Lease Agreement. Provide the lease term’s end (expiration) date under the original agreement.
6. Section Number of Original Lease Agreement. You can specify a section or paragraph number in the original agreement that allows the lease term extension.
Step 4 – Identify New Lease Term Specifics
7. Start and End Dates. Write the start and end date of the new extended lease term.
8. Rent. State whether the rent for the new lease term will remain the same. If it changes, specify the new monthly rent.
9. Security Deposit. Choose whether there’s an additional security deposit for the new lease term. If yes, state the amount of the other security deposit and when the amount is due by providing the number of days due from the start of the lease term.
10. Additional Provisions. You can include any new provisions or modifications to existing terms in the original lease.
Step 5 – Choose Governing Law
11. Governing State Law. Our templates allow the state whose laws will govern the agreement to be pre-filled with your state of residence.
Step 6 – Obtain Signatures
12. Landlord. The landlord provides their full name and signature.
13. Tenant(s). All tenants provide their full names and signatures.
Lease Renewal Agreement Sample
Download a free lease renewal agreement template as a PDF or Word file below:
Frequently Asked Questions
What are auto-renewing leases, and are they legal?
Auto-renewing leases renew automatically for a specified period, usually for the same time as the initial lease term.
They’re legal in most states, but they’re subject to specific restrictions. For example, some jurisdictions require landlords to give tenants advance notice of automatic renewals.
Is a renewal a new contract?
Yes, a renewal is a new contract. The tenant and landlord must both sign it for it to go into effect.
How many times can I renew a lease?
Federal and state laws don’t limit the number of times a landlord can renew a lease. Ultimately, it’s up to the landlord’s discretion and the tenant’s willingness to renew a lease.
Can a landlord refuse to renew a lease?
Yes, a landlord can refuse to renew a lease. However, they must follow local laws regarding notice periods and cannot discriminate based on race, gender, religion, familial status, or disability. Retaliatory non-renewal for tenants exercising their legal rights is also prohibited. Always check local regulations and seek legal advice if needed.
What happens if a tenant does not renew but stays in the property?
It depends on state laws, however, generally If a tenant stays after their lease expires without renewing, they often become a month-to-month tenant, where the original lease terms apply, but either party can end the tenancy with proper notice, usually 30 days.
If the landlord does not consent to the tenant staying, it becomes a holdover tenancy, and the landlord can either start eviction proceedings or charge higher rent. Communication between the tenant and landlord can help resolve the situation amicably.