A lease renewal letter notifies the tenant about an upcoming lease expiration, and gives the tenant the option and direction for renewal. A renewal letter is informational and does not bind the landlord or tenant to a new lease.
Is Lease Renewal Necessary?
Lease renewal is optional in most cases, absent specific terms in the rental agreement. By default, a landlord can end a tenant’s lease at the end of its term, as long as the landlord follows state notice requirements.
When To Send a Lease Renewal Letter
Landlords often send a lease renewal letter far in advance of the lease’s end date. Tenants may take a long time deciding whether to renew. The landlord also has an interest in reserving enough time to find a new tenant in the event of non-renewal.
Some states additionally require a specific amount of advance notice, by law, regarding the option for lease renewal. This chart lists notice requirements, state by state:
| State | Yearly/Fixed Term Lease | Month-To-Month Lease |
| Alabama | None | 30 days |
| Alaska | None | 30 days |
| Arizona | None | 30 days |
| Arkansas | None | 30 days |
| California | 1 year: 60 days ; 1 year: 30 days | 30 days |
| Colorado | 1 year: 91 days; less than 6 mo. – 1 year: 21 days | 21 days |
| Connecticut | 3 days | None |
| Delaware | 60 days | 60 days |
| Florida | 60 days | None |
| Georgia | 60 days | None |
| Hawaii | None | None |
| Idaho | None | 30 days |
| Illinois> | 60 days | 30 days |
| Indiana | None | 30 days |
| Iowa | None | 30 days |
| Kansas | None | 30 days |
| Kentucky | None | 30 days |
| Louisiana | None | 30 days |
| Maine | None | 30 days |
| Maryland | 90 days | 30 days |
| Massachusetts | None | 30 days or 1 month (whichever is longer) |
| Michigan | None | 1 month |
| Minnesota | None | 1 full rental period before last day of tenancy |
| Mississippi | None | 30 days |
| Missouri | None | None |
| Montana | None | 30 days |
| Nebraska | None | 30 days |
| Nevada | None | 30 days prior to payment date |
| New Hampshire | 30 days | 30 days |
| New Jersey | 1 month | 1 month |
| New Mexico | None | 30 days |
| New York | None | 30 days |
| North Carolina | Year-to-Year: 1 month | 7 days prior to payment date |
| North Dakota | Year-to-Year: 1 month | 1 month |
| Ohio | None | 30 days |
| Oklahoma | None | 30 days |
| Oregon | None | 30 days prior to payment date |
| Pennsylvania | 1 year or less: 15 days; 1 year: 30 days | 15 days prior to payment date |
| Rhode Island | None | 30 days prior to payment date |
| South Carolina | None | 30 days prior to payment date |
| South Dakota | None | 30 days prior to payment date |
| Tennessee | None | 30 days |
| Texas | 30 days | 30 days from next payment date |
| Utah | None | 15 days prior to payment date |
| Vermont | None | 1 payment period prior to termination date |
| Virginia | 90 days | 30 days from next payment date |
| Washington | None | 20 days |
| Washington D.C. | None | 30 days |
| West Virginia | None | 30 days |
| Wisconsin | None | None |
| Wyoming | None | None |
If a lease renewal letter is not sent before the required state deadline, a current fixed-term lease upon expiration transitions into a month-to-month lease.
In states without an explicit timeframe, it’s still good practice to send a lease renewal letter well in advance of the lease’s expiration. Doing so provides the following benefits:
- The tenant has time to make a decision about renewal.
- Landlord and tenant can discuss and/or negotiate any new or changing terms.
- The landlord has time to advertise and start screening for new tenants if the current tenant decides not to renew the lease.
Elements of a Lease Renewal Letter
A lease renewal letter normally includes the following information:
- Date sent.
- Landlord’s name and contact information.
- Tenant’s name and contact information.
- Rental property address, including the unit number.
- Reference to current lease agreement (a copy is often included with the letter).
- Due date for last rental payment.
- Expiration date of existing lease.
- New monthly rental amount.
- Date and length of new lease.
- Any terms for the new agreement that are new or changed from the original lease terms.
- Tenant process for lease renewal.
- Deadline for response.
- Landlord’s signature.
- Tenant’s acknowledgement.
Lease Agreement Renewal Terms
Some terms of the rental usually change when a lease gets renewed. Potential changes may include:
- Raising the rent to reflect the current market. (calculate rental rates here)
- Lowering the rent to entice a tenant to stay.
- Switch to a month-to-month lease (usually if property sale is a possibility).
- Other change of terms to resolve issues that arose during the current lease.
Tenants for their part may also want to renegotiate the lease. A tenant may want to negotiate the following:
- Rent price or security deposit.
- Duration of the lease.
- Policies or rules.
- Renters’ insurance requirements.
- Payment method(s).
While the landlord has final say on any proposals the tenant makes, there’s a pressure to renew by default since finding a good new tenant is often a lengthy and difficult process. Here are some methods and considerations landlords use to stay in a strong negotiating position:
- Reviewing local rental markets to see what similar units charge.
- Assessing seasonality and current rental demand.
- Factoring the property owner’s financial situation (i.e., mortgage on rental property).
- Potential concessions or amenities to offer the tenant.
- The quality of the tenant and tenancy in general.
Sending a Lease Renewal Letter
Sending a lease renewal letter can be done by mail, in person or email. Each of these methods requires some care to ensure receipt and proper documentation:
- Certified Mail: Restricted delivery is sometimes a consideration, since only the addressee (in this case, the tenant) can sign to receive it.
- Email: Often sent with delivery and read receipts to document that the tenant received and opened the message.
- In-person: Standard practice is to have the tenant acknowledge receipt with a signature.
After delivery, it’s common for landlords to keep a copy of the renewal letter filed with a notation of delivery method plus any other relevant information.
What if a Tenant Does Not Renew Their Lease?
Sometimes a tenant receives a lease renewal letter but decides not to renew. Documentation and notice are important in this situation. Rental best practice is for the tenant to produce a letter confirming non-renewal in writing, and for the landlord to give the tenant written notice about the lease’s end date.
The notice of end date usually includes specific instructions on what the tenant must do prior to moving out. These instructions vary depending on the specifics of the tenancy, but often include the following directions:
- Remove all trash and personal items.
- Thoroughly clean all appliances.
- Repair any damage caused to the property by tenants and invitees.
- Discontinue cable and phone services and other relevant utilities.
- Return keys.
