A Lease Renewal Agreement is a document that allows a landlord to extend the current rental period with a tenant.
This form modifies the original lease agreement’s expiration date while maintaining many of the same terms established in that lease.
What is a Lease Renewal Agreement?
Lease renewal and lease extension agreements officially continue a rental contract before the current lease period expires.
Though lease renewals and extensions have the same effect, they differ.
A lease renewal agreement is essentially a new contract that updates the duration of the rental period and may contain new terms.
On the other hand, lease extensions continue the current terms by extending the agreement after the end of the original lease period.
Lease Renewal vs. Lease Extension
As you approach the end of your lease agreement, you can avoid misunderstandings by understanding the difference between a lease renewal versus a lease extension.
Lease Renewal Terms
When you sign a lease renewal, you renew the current lease for an agreed-upon term as indicated in the lease agreement. Although renewal is often for the same length, the tenant and landlord may agree to a new time frame.
With a lease renewal, you create a new lease agreement, complete with rent amounts, termination requirements, and tenant obligations.
Lease Extension Terms
A lease extension agreement continues the existing lease beyond its original expiration date. An extension generally maintains the same terms as the original lease, but on an extended timeline.
For instance, if you have a tenant who is waiting to close on a new home, you might agree to extend the existing lease for a few months rather than signing a new lease.
Lease Renewal Agreement Example
When Should I Use a Lease Renewal Agreement?
You should use a lease renewal agreement when you want to continue renting your property to the current tenant or if you need to update the terms of the existing lease.
Whether you are a landlord or a tenant, you can use a lease renewal agreement to let the other party know your intentions.
You can also use a lease renewal agreement to change the current lease terms. For example, a tenant might want to request improvements to the amenities in the current agreement, or a landlord might seek to increase the rent.
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.
Lease Renewal Pros and Cons
Since a lease renewal is essentially a new contract, you may use this opportunity to change the lease terms, if necessary. For example, if you want the tenant to handle snow removal during the lease term, you may add this to the terms of the lease renewal agreement.
You may also take this opportunity to increase the monthly rent or alter the payment terms.
While you can refund and request a new security deposit, many landlords simply agree to keep the same deposit and carry it over into the new lease. If the new deposit is higher, you may ask the tenant to pay the difference.
A lease renewal locks your tenants into the lease for the full term of the lease, which helps to ensure your income for the lease period.
To renew the lease, you and the tenant agree to a new lease. If the tenant does not agree to a new lease, you could risk losing a good tenant. In this case, a lease extension may be a better option.
How to Use a Lease Renewal Agreement
Begin the process of using a lease renewal agreement before your lease ends.
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 |
Step 1: Send a Lease Renewal Letter
Landlords often must send a notice to let the tenant know that:
- The landlord is willing to negotiate a lease renewal or extension
- The landlord is inquiring whether or not the tenant wants to continue renting the property
- The landlord is unwilling to extend the lease, so the rental period will end as scheduled
While the landlord usually initiates the lease renewal, tenants can request any of the above conditions. If tenants do not want to renew the lease, they should send a written intent of non-renewal notice to their landlord.
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, but ultimately it is up to the landlord’s discretion whether or not 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 lease agreement.
Lease Renewal Agreement Sample [PDF & Word]
The following sample template is a printable lease renewal agreement that you can download to modify or extend a lease with your tenant.
How to Write (Fill Out) a Lease Renewal Agreement
A lease renewal agreement is essentially a new contract, so following the correct steps in completing the form is essential.
Before you fill out your lease renewal agreement, note the state you are contracting in.
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 is not the address of the leased property.
3. Tenant Information. Enter the name and address of each tenant.
Step 3 – Fill in Original Lease Details
4. Date of Original Lease Agreement. Write the date of the original lease agreement (in most cases, the date the landlord and tenant signed the original contract).
5. End Date of Original Lease Agreement. Provide the lease term’s end (expiration) date under the original lease agreement.
6. Section Number of Original Lease Agreement. This is optional. You can specify a section or paragraph number in the original lease agreement allowing 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 changes or remains the same. If it changes, specify the new monthly rent.
9. Security Deposit. Choose whether or not there is any additional security deposit for the new lease term. If yes, state the amount of the additional 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. This is optional. You can include any new provisions or modifications to existing terms in the original lease agreement.
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 a signature here as well as a full name.
13. Tenant(s). All tenants provide their signatures here as well as their full names.
Use our document builder to quickly create a customizable lease renewal agreement.