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 agreements, or lease extensions, are used to officially continue a rental contract before the current lease period expires.
Though renewal and extension have the same effect, some states define them differently.
A lease renewal is essentially a new lease agreement that updates the duration of the rental period.
Lease extensions continue the current terms by extending the agreement after the original lease period.
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 request changes to 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 application process.
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 before the lease expires. However, best practices are to state your intent at least 60 days before the lease end date.
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 send a request for 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 is 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 in writing:
- A copy of the old lease
- The new rent amount
- Changes to the terms and conditions
- The end date of the old lease and the start date of the lease renewal
Step 4: Sign the Lease Renewal Agreement
Once the landlord and tenant agree on the new lease, both parties should read over and sign the form.
Ensure that everyone understands the new arrangement and keep a copy of the officially renewed lease agreement.
Lease Renewal Agreement Template [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.
Lease Renewal Agreement
How to 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.
Step 1: Fill out Landlord and Tenant Information
Record basic contact information and names for the landlord and the tenant.
Step 2: Write the Date and Property Address
Note the original start and end date and the beginning and end of the new lease extension — also referred to as the “Extension Term.” The new contract should also include the address of the rental property.
Step 3: Determine the Rent Amount Agreement and Security Deposit
Document the renegotiated rent amount or if the price per month remains unchanged. Mention whether or not the tenant needs to pay an additional amount for the security deposit.
Step 5: Changes to the terms and conditions
Describe any amendments to the original lease negotiated by the landlord and tenant. This step is essential in distinguishing between a lease renewal or lease extension in some states.
Step 6: Signatures
The landlord and tenant should sign and print their names on the document. Make sure that both parties keep a copy of the official document.