How to Write a Lease Renewal Agreement Letter (with Sample) Use this sample lease renewal agreement letter as a template for your formal agreement letter. Last updated on March 11, 2019
When a tenant’s lease is coming to an end a lease renewal agreement letter can be sent by either the tenant or the landlord to request that steps be taken to renew the lease. A landlord may want the tenant to renew the lease because he or she has always paid the rent on time, kept the property in good condition and been good tenants in general.
A tenant may renew a lease because he or she likes the apartment and does not want to move. They will send a renewal letter to the landlord requesting to have another lease contract. In some cases, a tenant can use this letter to request upgrades to repairs on the property. When a lease ends, the landlord can choose to raise the rent, request month by month payment or renew the lease as is. Most leases are renewable from 30 – 45 days before the date of expiry. If the tenant has changes they want such as new flooring, appliances or to have the apartment painted, this is the time to mention it.
The tenant should be prepared for an increase in rent. This is standard business practice and within the landlord’s rights. The tenant must decide how much more rent they are willing to pay, and if the increase is too much, they need to look for another residence. If the tenant has a hardship, it is possible to request that the rent stay the same for a specific time such as the length of the new lease.
If the tenant suspects the landlord will raise the rent, they should make an effort in advance to negotiate the rent. The first step is to know the rental rates in the neighborhood. Then, the tenant will be able to tell the landlord that their rent hike is too high.
If the property is run down and needs a lot of repairs, the landlord may not be able to get a higher rent from a new tenant. It is worth having a good tenant rather than taking a chance on a new tenant who doesn’t pay on time, or bounces checks.
Finally, if the landlord is an individual with whom the tenant can speak, they may have a better chance of getting what they want. If the landlord is a property manager who works for a large real estate corporation, the tenant may not have a very good chance of negotiating the rate. When the tenant and landlord agree on a new lease, the tenant needs to get the agreement in writing in the form of a new lease contract and both parties sign it. The tenant should keep a copy.
The landlord is not required to give notice that a lease is expiring soon. If the landlord wants to keep the tenant on a new lease, they must inform the tenant in advance or the lease will automatically revert to a month-to-month rental agreement.
For landlords, it is considered good business practice to send a lease renewal agreement letter 60 days before the lease expires. This gives the landlord enough advanced notice to find another tenant if the current tenant decides not to renew the lease.
Below is a sample lease renewal agreement letter from a tenant to the landlord. It should be sent by certified mail, to ensure that it is received by the landlord in time. The tenant should use professional business-letter style because it is an important document.
Lease Renewal Agreement Letter Sample Name of Tenant Address of Tenant City, State, Zip Code
Name of Landlord Address of Landlord City, State, Zip Code
RE: Lease Renewal
Dear Name of Landlord:
This letter is a formal request to renew the lease on the property at the above address for another year. The lease expires on DATE and I would like to renew it until DATE.
I would respectfully request that you not raise my rent of AMOUNT for the term of the new lease, as I am out of a job and living on my wife’s salary. I hope to have a new job within the next few months. You will also benefit financially because you won’t have to advertise for a tenant, screen and background check tenants or pay agent fees if we move out. You will also have no vacancy time.
I hope you will favorably consider my request and respond within two weeks. I can be reached at Phone Number or at Email Address if you have any questions. You may send your acceptance in writing and a new contract lease to the above address.
Sincerely, Signature of Tenant Printed Name of Tenant