Renewing a lease with a good tenant is almost always better than starting the search over, which is why every landlord should have a clear process for handling renewals well before the current term ends. A smooth renewal keeps reliable tenants in place, avoids a vacancy gap, and saves you the cost of re-listing, re-screening, and re-furnishing the unit for a new occupant.
Start the Conversation Early
Don't wait until the last week of the lease to bring up renewal. Reach out 60-90 days before the term ends to ask whether the tenant plans to stay. This gives both sides enough time to negotiate terms, and gives you a real runway to start marketing the property if they decide to move on.
Review the Rent Fairly
A lease renewal is a natural point to revisit rent, but jumping the price up too aggressively can push out a tenant who would otherwise have stayed. Check current market rates for comparable properties in your area and consider a modest, justifiable increase rather than a steep one, especially for a tenant with a strong payment history.
What to Review Before Offering Renewal
Before extending an offer, take stock of how the tenancy has actually gone:
- Payment history — was rent consistently on time?
- Property condition — has the unit been well maintained?
- Communication — has the tenant been responsive and easy to work with?
- Any outstanding maintenance issues that should be resolved before renewal
A tenant who checks all these boxes is worth prioritizing for renewal, even ahead of the small premium a brand-new tenant might occasionally offer.
Pro tip: Offer a small incentive for early renewal confirmation, like a minor upgrade or a short rent freeze — it's often cheaper than a month of vacancy and re-marketing costs.
Put the Renewal in Writing
Whether it's a fresh agreement or a formal addendum, document the renewed terms clearly — updated rent, revised end date, and any changed clauses — and have both parties sign it before the old lease expires, to avoid any ambiguity about which terms apply.
Why it matters: Retaining a reliable tenant through renewal is typically far cheaper than the combined cost of vacancy, marketing, and re-screening a new occupant.
If a Tenant Declines Renewal
If a tenant chooses not to renew, use the notice period productively — schedule a walkthrough, plan any turnover repairs, and start marketing the property immediately so the gap between tenants stays as short as possible.
Consider Longer Lease Terms for Reliable Tenants
For tenants with a strong track record, offering a longer renewal term — 18 or 24 months instead of the standard 11-12 — can be worth exploring. It reduces how often you go through the renewal process and gives the tenant more stability in return, which is often reason enough for them to accept a fair rent adjustment. Just be sure any extended term is clearly reflected in the written agreement, including how future increases will be handled.
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