If the end of a lease is on the horizon, you need to make a decision. If the current tenant wants to stay longer, you can choose between renewing a lease and finding another tenant. Finding a new tenant can be a time-consuming and expensive process that includes marketing the property, sorting applications, displaying the unit, and screening potential tenants. The longer it takes to find a new tenant, the more expensive the process becomes. Look for the original lease and look at it to see when it ends. The most frequent change in case of renewal of the lease is the amount of rent paid per month. Depending on economic conditions, both parties may argue that they are reduced or increased. A tenant who has met all the initial terms of the lease and a lessor who wishes to keep them would use the same lease with an extension. This will avoid the additional administrative burdens associated with the letter of a new lease agreement and all related taxes by both parties. A tenant needs extra time to find a new property or complete their move and does not need a full annual or specific rental agreement, but several weeks or months. An extension of the lease instead of a new lease would make more sense in this situation. Shorter-term lease renewals are usually monthly renewals with a higher rent amount, unlike a one-year extension.

The most common situations are listed below: the renewal of a lease may require a new contract with certain conditions, signed and dated. If your rental policy has changed during your tenant`s rental period, the extension may be the right time to update the lease to reflect these changes. Regardless of whether additional legal or professional assistance is sought or not, a lease has the potential to be a great „win-win“ situation for both the landlord and the tenant. . . .