Lease Renewal Agreement Template

The end date on your lease is getting close, and your tenant pays on time and keeps the place in good shape. Before that date arrives, both of you need to know what happens next – and a handshake rarely holds up when questions come later.

What a Lease Renewal Agreement Does

A lease renewal agreement is a written contract that continues an existing rental for a new term once the current lease expires. The landlord and tenant both sign it, and it usually spells out the new start and end dates, the rent, and any rule changes.

It works for both residential and commercial rentals. Many renewals run for another 12 months, but the parties can pick any length that suits them, including a shorter term or a switch to month-to-month.

Lease Renewal vs. Lease Extension

These two terms often get mixed up, but they work differently. A renewal replaces the old term with a new one, which gives you a clean chance to update rent, rules, or who lives in the unit. An extension keeps the current lease in force and simply moves the end date.

If nothing needs to change except the timeline, an extension may be enough. If you want to adjust the rent, add a pet policy, or change the lease length, a renewal is usually the better fit.

When to Start the Renewal Process

Many landlords reach out 60 to 90 days before the lease ends. That window gives the tenant time to decide and gives you time to find a new renter if they plan to leave.

Notice rules vary by state and sometimes by city. Some areas set minimum notice periods for rent increases or for ending a tenancy, and rent-controlled or rent-stabilized units often have stricter renewal rules. It's a good idea to check your state and local requirements before sending an offer, especially if the rent is going up.

What to Include in the Agreement

A strong renewal leaves no room for guessing. Most agreements cover:

• The names of the landlord and every adult tenant
• The rental property address, including the unit number
• The date of the original lease and a statement that its terms still apply unless changed
• The new start and end dates
• The new rent amount, due date, and payment method
• Any changed or added terms, such as pet, parking, or maintenance rules
• How the security deposit carries over
• Signature and date lines for all parties

Pointing back to the original lease matters. Without that link, a tenant may assume the old terms – like who handles certain repairs – no longer apply.

How to Renew a Lease

The process is simple when you take it in order:

• Talk first. Ask the tenant whether they plan to stay and mention any changes you have in mind.
• Review the current lease. Look for the end date, any automatic renewal clause, and required notice periods.
• Draft the renewal. Carry over what still works and update only what's changing. ConsumerShield's template gives you a ready structure for this step.
• Set a response deadline. Give the tenant a clear date to accept, decline, or ask questions.
• Sign and store it. Have the landlord and all tenants sign, then keep a copy with the original lease.

When the Tenant Declines, Negotiates, or Stays Silent

Not every offer gets a quick yes. A tenant who wants to negotiate may ask for a smaller rent increase, a shorter term, or a change to services like parking. As the owner, you can accept, make a counteroffer, or keep your original terms.

If the tenant declines, it may help to confirm the move-out date in writing and share move-out instructions. If you hear nothing by your deadline, look at the original lease. In some states, a tenant who stays and keeps paying rent after the lease ends may end up on a month-to-month tenancy, so it's worth settling the question before the end date passes.

Legal Limits to Keep in Mind

In most places, landlords don't have to renew a lease. But that choice has limits. Under the federal Fair Housing Act, a landlord can't refuse a renewal or offer worse terms because of race, color, religion, sex, national origin, familial status, or disability.

Many states and cities also bar non-renewals that punish a tenant for reporting problems or asking for repairs. Some areas cap rent increases or require a valid reason to end a tenancy. Keeping notes on why you made each decision can help if a tenant ever questions it.

A clear, signed renewal keeps a good tenant in place and keeps both sides on the same page for the year ahead. When your rental business needs other paperwork along the way, explore the full range of business law forms on ConsumerShield.