When a lease ends, you, the landlord, or the rental company can do two things: evict the tenant or renew the lease. If the tenant ticks all your boxes and you’d love for them to continue renting the property, sending them a lease renewal letter is the best thing to do. This way, you tell the tenant you love having them and would like to continue.
Lease renewal letters can include anything you want to be included or excluded from the previous lease. If you want everything to remain as is, this can also be written in your lease renewal letter.
This article will discuss everything you need to know about lease renewals and how to write the best lease renewal letters.
A lease renewal letter can be sent any way you please. For ease on both you and the tenant, you should consider sending the lease via email and having them e-sign. This way, you don’t have to spend time or money printing it and keeping multiple copies.
Ideally, a lease renewal letter should be sent at least 90 days before the expiration of the existing lease. This is important as it gives the tenant time to make decisions and consider whether or not they want to continue being your tenants.
If you cannot send the lease within 90 days, you should ensure it’s sent within 30 days of the existing lease expiring. The shortest time you can give the tenant before sending a new lease is 30 days.
If you have a great relationship with the tenant and know they do not intend to vacate your property, you can forgo all the formality and send the lease whenever you’re ready.
On the other hand, if you have a tenant you’re unsure of, the safest thing to do would be to send the lease at least 90 days before the lease expires. This way, the tenant knows you want to continue renting to them. And if they have other intentions, you’ll also know beforehand.
In this section of this article, we’re going to discuss everything you need to know when writing a lease renewal letter:
To ensure you’re ready to renew a lease with your tenants, here are some considerations to bear in mind:
One of the most important questions to consider when renewing leases is whether or not you want to keep these clients. If you have no intention of keeping your current crop of tenants, an eviction notice should be what you’re sending instead of lease renewals. Lease renewal letters should ONLY be sent. If you intend on keeping your current tenants.
Do you intend to renew the lease for a long time? Ideally, the length of the new lease should be the same as the old one. You can decide to lease longer, but it shouldn’t be lesser.
If you choose to renew the lease, you should do so it ends in the summer. This is important because summer is the peak rental period. So, if you have to look for new tenants, summer is easily the best period.
It is not unusual for tenants to ask for month-to-month leases. So, if you’re open to a month-to-month lease instead of a longer-term one, you can accept your tenant’s proposition. The downside with this type of lease is the cancellation period. With a lease like this, any party can cancel without much thought.
If you have intentions of renovating your property, you may want to skip renewing the lease. Also, having this in mind months before making the decision is important as it helps you and the client decide on the best way forward.
Name of Tenant Tenant's City, State, and Zip Code Date Name of Landlord Landlord's address City, State, and Zip Code RE: Lease Renewal Dear (Tenant’s name): This letter is to inform you that your lease for ――――― will expire on the ――――― and is due a renewal. You’ve been a model tenant and I would like to offer a lease renewal at the current rate and all other conditions remaining the same. Do you want to renew the lease at: One Year Six months Month-to-month If you’d like to renew the lease, please choose a preferred duration and return this letter to me. If you have any concerns or inquiries, please do not hesitate to contact me. Date ―――――. Kind Regards, (Name of Landlord) ――――― (Name of Tenant) ―――――
Name of Tenant Tenant's City, State, and Zip Code Date Name of Landlord Landlord's address City, State, and Zip Code RE: Lease Renewal Dear (Tenant’s name): This is to notify the occupant of ―――――the lease renewal and rent increase. Beginning on the ―――――, the monthly rent of ―――――will be increased to $ ―――――. This current lease will end on the ――――― and this new rent increase will come into effect from the next month’s rent. If you accept these, please sign this letter and send a copy. If you have any questions or inquiries, please reach out to me. (Name of Landlord) ――――― (Name of Tenant) ―――――
Subject: Request for Lease Renewal Dear [Landlord's Name], I hope this message finds you well. I have thoroughly enjoyed my time as a tenant at [Property Address] and I am writing to formally request the renewal of my lease, which is due to expire on [Current Lease Expiry Date]. I have greatly appreciated your prompt attention to maintenance requests and your professionalism throughout my tenancy. Due to the convenience and comfort of this property, I would like to continue residing here. If it is acceptable to you, I kindly request the opportunity to renew my lease for an additional [lease term, e.g., one year] starting from [proposed start date, e.g., [Next Lease Start Date]]. I assure you that I will continue to uphold the terms of our current lease and take good care of the property. Please let me know if there are any specific procedures or forms I need to follow for the lease renewal. I am happy to discuss any terms or conditions as necessary. Thank you for your consideration. Sincerely, [Your Name]
Date: [Date] Tenant Name: [Tenant Name] Tenant Address: [Tenant Address] Landlord Name: [Landlord Name] Landlord Address: [Landlord Address] Dear [Tenant Name], This letter is to offer you a renewal of your lease for the property located at [Property Address] for a period of [Lease Term] months, commencing on [Lease Start Date] and terminating on [Lease End Date]. The monthly rent for the renewed lease term will be [Monthly Rent Amount]. All other terms and conditions of the original lease agreement will remain in effect, except for the lease term and monthly rent. If you are interested in renewing your lease, please sign and return a copy of this letter to me by [Date]. Sincerely, [Landlord Name] [Tenant Signature][Date]
[Your Company Letterhead] [Date] [Landlord's Name] [Landlord's Company] [Landlord's Address] [City, State, Zip Code] Dear [Landlord's Name], RE: COMMERCIAL LEASE RENEWAL REQUEST I trust this letter finds you well. I am writing on behalf of [Your Company Name] regarding the lease of our commercial space at [Property Address]. Our current lease is set to expire on [Current Lease Expiry Date], and we would like to formally request the renewal of our lease for an additional term. We have been tenants at this location for [number of years] and have found the property to be well-suited to our business needs. The location, facilities, and your responsive property management have contributed to our success. Therefore, we would like to continue our tenancy and request the renewal of our lease for a term of [Proposed Lease Term, e.g., three years], starting from [Proposed Lease Start Date, e.g., [Next Lease Start Date]]. We are committed to maintaining the property and complying with all terms and conditions of the lease agreement. If there are any specific procedures or paperwork required for the lease renewal, please let us know, and we will promptly provide the necessary documentation. We value our ongoing relationship and look forward to your positive response. If you have any questions or if you would like to discuss any terms or conditions, please feel free to contact me at [Your Contact Information]. Thank you for your attention to this matter, and we appreciate your consideration of our lease renewal request. Sincerely, [Your Name] [Your Title] [Your Company Name] [Your Contact Information]
Conclusion
When sending a lease renewal letter to a tenant, especially with changes to the original lease, it is essential to do this with ample time. This way, both you and the tenant have time for other arrangements if they’re not renewing.
