The lease or “lease renewal” allows a landlord and tenant to renew a tenancy agreement beyond its end date. The other terms of the lease remain unchanged, unless they are amended accordingly. Depending on economic conditions, the landlord can increase the monthly rent. This PDF model for lease renewal contracts helps you get your lease renewal contract immediately! Creating legal documents such as contracts takes a long time to think about what they should respect and what they should have in your document. With this model, you can simply add the necessary details to the property to rent, the conditions, duration and name of the contractor and you are well to go! The property owner or manager sends the endorsement to the tenant. The endorsement will be added to the lease agreement, which is currently in effect with changes such as the extension period and the new rent amount. Unless further change, the remaining portion of the lease remains intact. When it comes to negotiating, it is best to do some research first. Use a fair market rental calculator and check similar properties near you to see if or not you should adjust your rental price. If the rent is too high, you can lose a good tenant to a place that is more affordable. Do you have good tenants who rent by the hour? You can encourage them to sign a longer lease at a reduced rate, or offer to renew a lease from month to month.
Ultimately, you have to weigh the risks and costs of the rent rate and decide if you are willing to make concessions to keep a good tenant longer. Lease renewals are an important part of the leasing relationship because they reduce the risk for each party. For example, a landlord who agrees to extend the rent may maintain the original tenancy conditions, including any termination provisions. This means that the tenant must provide a written prior notification before the property is evacuated. The owner can be sure that there are no surprises and does not have to risk an empty unit. Similarly, a rent extension can bring some stability to tenants.