Lease Renewal Letter
A lease renewal letter offers the tenant a new term before the current one ends, and states whether the rent or any terms will change. Sent on time, it keeps a good tenant and avoids vacancy. Sent late, or without the notice your state requires for a rent increase, it can leave you with a month-to-month tenancy at the old rent.
A renewal sent too late
Many landlords remember the renewal two weeks before the lease ends. Depending on the state, a rent increase may require 30, 60 or 90 days' notice, and a tenant who stays past the end of a lease without a new agreement often becomes a month-to-month tenant under the old terms. Timing is as important as the number.
What the template covers
The offer and its deadline
New term length, start date, and a date by which the tenant must accept.
Rent and terms that change
New rent and effective date, and any other changed term. Everything else continues unchanged.
Notice that meets state rules
Send it early enough to satisfy your state's notice period for a rent increase.
Signed acceptance
The tenant signs the renewal online; it is stored with the original lease.
Notice periods for rent increases
Rent increase notice periods are set by state and sometimes local law. For month-to-month tenancies in California, Civil Code § 827 requires 30 days' notice for an increase of 10% or less and 90 days for a larger increase, and statewide rent caps under Civil Code § 1947.12 apply to many units. Other states set their own rules, and rent-stabilized units follow local ordinances. A renewal accepted and signed by the tenant is a new or amended lease. The Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001, provides that a signature, contract or record may not be denied legal effect solely because it is in electronic form, and every state except New York has adopted the Uniform Electronic Transactions Act; New York reaches the same result through its Electronic Signatures and Records Act.
A renewal that locked in a good tenant
A landlord in Sacramento sent renewal offers 75 days before each lease ended, with the new rent clearly stated and a two-week acceptance window. The tenant signed online the same week. The landlord avoided a month of vacancy and the uncertainty of a holdover tenancy at the old rent.
What a lease renewal letter should include
- Tenant names, property address and current lease end date.
- The new term, start date and rent.
- Any changed terms, and a statement that all other terms continue.
- The deadline to accept and how to accept.
- Signature lines for landlord and tenants.
Questions people ask about this
How far in advance should I send a lease renewal letter?
At least as far ahead as your state requires for any rent increase, and ideally 60 to 90 days before the lease ends.
What happens if the tenant doesn't sign?
In many states the tenancy becomes month-to-month on the same terms if the tenant stays and you accept rent. Check your state's rules.
Can I raise the rent in a renewal?
Yes, subject to state and local rent laws and notice requirements.
Can the tenant accept the renewal electronically?
Yes. An e-signed renewal is valid under the ESIGN Act and UETA.
Should all tenants sign the renewal?
Yes. Every adult on the original lease should sign the renewal so all remain bound by the new term.
Can a renewal change other terms besides rent?
Yes — pet rules, parking or utilities, for example — as long as both sides agree and the change complies with state and local law. List each changed term explicitly.