What is a Lease Renewal Letter?
A lease renewal letter is an official document that a tenant or landlord writes to request for tenancy renewal. As the lease agreement comes to an end, a lease renewal letter is issued if the landlord or tenant decides to extend the contract.
How to Write a Lease Renewal Letter?
Housing Wire said that in 2018, 53% of renters choose to renew their leases. With many people renting residential and commercial spaces, it's no surprise that leasing a property is a good way to generate income. A tenant might want to extend his lease for the affordable rental fee. A landlord might want to keep a tenant for several reasons as well.
If a lease gets renewed, it must be put into writing. Read the steps below in writing a lease renewal letter.
1. Make a Title
In writing your lease renewal letter, think of it like any other business document and use the standard form of writing. With that, you need to start your letter with the title. Include basic information as well as the date of submission and salutation.
2. Include a Reference
The main purpose of your letter is to renew your lease agreement, so include the previous one that you had and state some key information about it. Mention the start and end date of the lease, the length of the contract, and more.
3. List Renewal Terms
Create a list of the agreed renewal terms such as rent increase, early notice of payment, etc. You can also include some concerns about the lease that the owner can address later on. Get a response from your tenant by stating your available time for a discussion and including your contact information too.
4. Affix Your Signature
Put your signature on your document to make it valid. Both parties should know that whatever is written in the letter is by law.
Is it really needed to write a lease renewal letter?
Writing a lease renewal letter depends on the mutual agreement between the landlord and the tenant. If you agree to the terms of the lease extension, then by all means you can stay longer in the property you're renting at the moment.
Does a lease renewal letter act as a contract?
A lease renewal letter is a legally binding contract depending on its way of writing, so it acts as a contract.
How do you break a lease without paying a penalty?
The first thing you should check in your agreement is the early termination clause. Most of the time, breaking an agreement backfires with one party paying a penalty. You don't have to worry if the landlord included an early termination clause in your agreement. That means, you can break the agreement without paying a penalty when things don't work out for you.
Can a landlord use the lease expiration to evict a tenant?
Evicting a tenant is another story. It needs a notice that says a landlord doesn't want the tenant to stay in his property anymore. With lease expiration, the landlord can choose not to renew it for some reasons.
How many days should a lease renewal letter be issued before the lease ends?
A lease renewal letter must be issued 90 days before a lease ends. This gives the tenant enough time to decide if he wants to renew the lease or find another space to stay.