Have you ever wondered how to ask landlord to renew lease? When you sign a lease agreement with a landlord, it is a periodic agreement. Both parties agree on how long the lease agreement will be valid, and in most cases, tenants request lease renewal. However, it will be unwise to negotiate a rental agreement for an extended time without pre-set conditions right from the beginning.
For a lease renewal to take place, the tenant and landlord of the investment property must have agreed on a process of renewing the lease. The process to renew a lease agreement often carries the following options;
- Continue the lease without changing the conditions in the first agreement.
- Allow the lease contract to expire.
These options allow the landlord and tenant to contemplate if the lease contract should continue or end. Furthermore, the lease renewal allows both parties to agree on what conditions should be maintained and which should change.
This article will guide you on how to negotiate a lease renewal properly.
How to renew a lease agreement
Most people don’t know how to negotiate rent or how to break a lease and negotiate a new one. But, a lease contract allows an option to renew the lease. However, including a renewal option in the initial lease agreement isn’t mandatory. A renewal option allows you to stay in your current property while negotiating for better amenities and conditions. It is an essential part of lease renewal.
It is also important to remember that you have to satisfy the landlord’s renewal criteria to have a chance to renegotiate the lease agreement. Furthermore, the landlord will determine if renewing the lease is acceptable.
In most cases, lease renewal goes on without renegotiation. In addition, it gives the landlord security to lease out their property to quality tenants, those who don’t renegotiate terms.
Nevertheless, before you renegotiate the terms of a lease agreement, you must notify your landlord or property manager before the lease expires. The time frame should be three to six months before the original lease expires. Furthermore, the lease renegotiation should come in writing. Hence, ensure you hand your landlord a lease renewal letter during this time.
Ensure you comply with any criteria that have been set for a new lease to take place. These conditions may include paying up any outstanding fees and renovating the property. These conditions depend on the agreement of your initial lease. Furthermore, ensure you uphold the terms of your previous rental lease. Breaching your previous lease agreement can warrant your landlord to dismiss any renegotiations of a new lease.
Once the landlord receives your lease renewal letter during the stipulated time, the landlord or property manager will prepare a document incorporating the new changes. However, if they agree, the landlord or property manager will only include the new terms.
Thus, if the landlord disagrees with your terms, they can call for a face-to-face so you can negotiate and find common ground. But you should avoid breaking the lease terms of the current agreement before the end date. That’s because if the current lease is a fixed-term agreement and breaking it might come with undue stress and added costs.
How to renew the lease on a commercial property
Renewing a rental property is a straightforward process. However, lease renewals with commercial or retail properties can get complicated if you don’t know the proper process.
Hence, you must understand your rights when renewing your lease with a rental provider. Furthermore, as a quality tenant, you should also be aware of the steps you must take to exercise the lease renewal option. In addition, you should also know the deadlines for providing renewal notice to the landlord and any criteria associated with the option.
What will change on lease renewal?
Generally, the new lease will have the exact requirements of the former. There might be a few changes, but everything should remain the same generally. A renewal is like a new agreement, but there is always a basis to build on. Hence, most of the former lease terms will also appear in the new lease, but with improvements.
During negotiations, you can change a few things in agreement with your landlord upon lease renewal. Some of those changes include;
- Increase or decrease in rent
- Change in obligations regarding repairs and maintenance
- Varying renewal terms
- Introducing special conditions
Thus, landlords can’t drastically change the terms of a lease as they would with new tenants. If, on rare occasions, the landlord or property manager wants to change the lease terms, they also have to give the tenants adequate notice before applying the new lease term. Furthermore, if the landlord wants to change anything, they can’t affect changes if you’re a current tenant.
Finally, landlords must note their obligations to current tenants throughout the renewal process. Some of these obligations include proper communication with tenants and negotiating any changes to the lease contract. Furthermore, property managers have to document the renewal terms complying with the ongoing lease agreement.
FAQs on how to ask landlord to renew lease
Should I pay rent while negotiating a new lease?
After you end a rental lease, ensure you only pay rent once the new lease is agreed upon and signed by you and the landlord.
Does a new lease need to follow pre-set conditions?
Yes, a new lease has to follow pre-set conditions of the current lease. This keeps landlords and tenants from making drastic decisions regarding the rental property.
What form should the lease renewal letter take?
The lease renewal letter should be a formal letter, and you should address it to the landlord or the property manager.
