Lease Renewal Letter: Template & Sample Letters

As a landlord, you may wish to hold on to a quality tenant who takes care of your property and pays rent on time. This may seem confusing as a lease is a fixed contract, and you cannot edit the end date. Nonetheless, you can retain your tenant through a lease renewal letter. This is a document presented to a tenant to extend their contract and address other tenancy issues. It is usually written a short while before the existing lease expires.

In this article, we explore why you would need this letter and how to draft it appropriately.

A lease renewal letter is a precursor to a formal contract. Depending on your offer, you may maintain the tenant for anywhere between 6 months to a couple of years. Before drafting it, consider the following:

• Is it the appropriate time? – The best time to send this letter is 90 days to the expiration date. This gives you and the tenant enough time to plan for any eventuality.
• Do you want to keep the tenant? – Consider whether they maintain your property and pay rent on time.
• Do you wish to change the terms of the lease? – If so, mention it in the letter.
• When do you need a response by? – Include a deadline
• For how long do you want to retain the tenant?

How you present this letter will determine whether or not you retain your tenant. Here are some tips to help you get the best out of your letter:

• Address the letter appropriately
• Get straight to the point
• Use a polite, positive, and professional tone
• Compliment the tenant
• Include any renewal terms
• Request for a response

Taking time off work to draft a lease renewal letter can be tedious and time-consuming. Here are a template and sample to guide you through the process.

Lease Renewal Letter Template

A renewal template is a pre-designed letter format for lease renewal. It contains all the essential parts that the letter should entail and can be tailored to suit a specific tenant. By using a template, you ensure you have everything in place in less time.

Lease Renewal Negotiation Letter

This letter is used to address specific tenant issues before agreeing to a lease renewal. It can dispute a rent hike, for instance, or complain about particular living conditions.

Commercial Lease Renewal Letter to Tenant

A commercial lease renewal is addressed to business owners who are renting a property. This may be individual owners, a partnership, or a company. Unlike a typical lease renewal, this letter is lengthier and addresses specific economic issues.

Lease Renewal Notice

This letter is sent by a landlord or authorized agent following the decision to renew a tenant’s lease. It should be sent before the existing lease expires and should include the period of the new lease and a response deadline.

A tenant may not always be aware that their lease is about to expire. By writing a lease renewal letter, you can notify them of this impending date. You can also propose a new lease and state whether you wish to maintain or change the tenancy terms. Make sure to send it in time, so your tenant has time to reach a decision. If they agree to your request, you can prepare, review, and sign a new rental lease.