How To Renew A Lease Agreement

An extension is legally considered an entirely new agreement if an extension only prolongs the end date of the original agreement. It depends on the terms of the lease and the applicable law. It is advisable to speak to your tenant 90 days before the lease expires to give you enough time to find a new tenant. An option to renew the lease means that the tenant has the option to rent the premises before the lease period expires. Therefore, if the tenant chooses to exercise the option to extend the tenancy agreement, the provisions of that option are taken up for another fixed term. If the terms of the lease largely correspond to the original, a simple contract of 1 side may be signed by the parties. If the new lease has many changes, i.e. a tenant has changed, the landlord has changed, the tenant has moved to a new unit in the building, etc. a new lease should be approved between the parties. Avail points out that some states require you to follow the extension period guidelines. In general, you should be proactive in the event of an extension. Ask your tenant 90 days in advance if they want to renew the lease. This might lead them to think ahead about a renewal, so you may have made progress in their intentions.

You will then have more time to throw the ball on the advertisement and look for a new tenant. The balance outlines a few reasons for renewing a lease, and the first two include time and money. If a tenant chooses to stay with you, you can save the time you should spend looking for a replacement and then preparing the apartment for a new tenant. According to the Zillow Consumer Housing Trends 2018 report, almost half (46%) Of all the tenants who have moved in the last 12 months, they already plan to relocate, now or within the next year. If you have a reliable tenant and want him to stay, you can do a few things here that can help them sign a rent extension: Some things that can change with a lease extension are: If a lease expires, a tenant can choose to move, renew a lease or continue to pay rent as a monthly tenant. If you offer a rent extension, the agreement is left to the discretion of the tenant. If they choose not to renew a lease, they must evacuate the property under the expiring lease agreement. Ultimately, it`s up to you, as the landlord, to decide if you want to renegotiate the lease – but if you want your tenant to keep renting, listen to their wishes and think about a new deal. If the tenant wishes to accept the terms of renewal mentioned above and accept the terms of this document, he must sign the “Tenant`s Signature” line and provide the “date” of his signature to the lines indicated accordingly at the end of this document. Not only do you secure your cash flow and save money if you extend a lease, you also save time.