With rental rates continuing to climb in 2025, more tenants are choosing to renew a lease agreement rather than move. But lease renewals come with their own rules, timelines, and risks. Before you commit, read our guide to understand your rights, your landlord’s responsibilities, and how to make the process work in your favor!
What Is a Lease Renewal Agreement?
A lease renewal agreement is a legal document that extends your current rental agreement for a new term (usually another 6 or 12 months) under similar or renegotiated conditions.
Unlike starting fresh with a brand-new lease, renewing a leasehold often allows tenants to continue living in the same property with minimal disruption. Sometimes, instead of drafting a whole new lease, the landlord may use a lease addendum, an add-on document that modifies or extends specific terms of the original lease. It is, however, a cleaner way to draft a new lease for the new term.
However, it’s not automatic; both the landlord and the tenant must agree to the lease contract renewal terms.
Lease Renewal vs. New Lease Agreement
While they may sound similar, there are key differences between a lease contract renewal and a new lease agreement:
- Lease Renewal: Usually builds upon the existing lease. Terms often stay the same unless renegotiated (e.g., rent increase, updated policies).
- New Lease Agreement: Starts a brand-new contract. This may happen if significant changes are needed, a long lapse has occurred, or both parties want a fresh start.
Choosing to renew a lease agreement can be simpler and faster, but in some cases, especially when terms need to be significantly altered, a new lease might be the better path.
Pros and Cons of Renewing a Lease
Before committing to another lease term, you need to weigh the benefits and drawbacks to see if renewing truly serves your needs.
Pros:
- Stability and continuity: No need to pack, move, or adjust to a new place.
- Avoiding the rental search hassle: Skip application fees, credit checks, and moving expenses.
- Opportunity for negotiation: Good tenants may leverage their track record to request upgrades or limit rent increases.
Cons:
- Rent increases: Landlords often raise rent upon lease contract renewal, sometimes above market rate.
- Limited flexibility: You're locked in for another term, which may not suit changing life plans.
- Deferred upgrades: Long-term rentals may miss out on property improvements new tenants receive.
What Should You Consider Before Renewing a Lease Agreement?
Even if you're comfortable in your current home, circumstances, finances, and future goals should be reevaluated before you sign a new lease term.
Typical Lease Renewal Timelines
Timing matters more than you might think when it comes to lease renewals.
Most landlords send a lease renewal notice between 30 to 90 days before the lease ends. This gives both parties time to consider new terms or make moving arrangements. As a tenant, you typically need to respond within 30 days of the lease’s expiration.
So, what happens if you miss the lease contract renewal deadline?
- You might be moved to a month-to-month agreement, which can include higher rent and less stability.
- Your landlord could refuse to renew a lease agreement, opening your unit for new tenants.
- You may face eviction notices if no agreement is reached by lease-end.
Review Your Living Situation and Future Plans
Does this home still work for you?
Before renewing, think about your lifestyle, job prospects, relationships, and personal goals. Are you planning a job change, expecting a family, or hoping to move closer to work or school? Even if the space is affordable, it might no longer align with your long-term vision.
Inspect the Property Before Committing
Just because you've lived there for a while doesn’t mean everything’s still in top shape. Before renewing, take time to:
- Check for leaks, mold, pest issues, or appliance malfunctions.
- Ensure your smoke detectors, HVAC, and plumbing are working properly.
- Request that any lingering maintenance issues be addressed as part of the lease contract renewal process.
You have more negotiating power now than you will after signing. Don’t waste the opportunity to ask for what you need!
Research Market Rents and Compare Options
It’s smart to check comparable listings in your neighborhood before renewing a leasehold. Use rental platforms or talk to neighbors to see what similar units are renting for. If your landlord proposes a rent increase, data gives you negotiating leverage.
In some cases, you may find better deals elsewhere.
Understand Lease Changes and Your Rights
Landlords often use renewals to introduce updates, such as:
- Rent increases or added fees
- New rules on pets, guests, or parking
- Utility cost-sharing changes
As a tenant, you have the right to negotiate these terms. If something seems unclear or unreasonable, don’t hesitate to seek advice from a local tenants’ union, housing authority, or legal aid service.
How to Renew a Lease Agreement?
A step-by-step list to guide you through the process is shown below:
- Review your current lease and take note of the expiration date.
- Communicate your intent to renew a lease agreement in writing.
- Negotiate any changes, such as rent increases or updated policies.
- Get a copy of the signed agreement for your records
Step 1: Review Your Lease and Local Laws
Before initiating a renewal, read through your existing lease carefully. Look for clauses regarding renewal procedures, automatic rollover, rent increases, and penalties for late notice. This will help you avoid surprises and clarify what’s negotiable.
Then, check local tenant-landlord laws, which vary widely by state or city. For example, in California, tenants in rent-controlled units may be entitled to automatic renewals unless evicted for cause, while in Texas, landlords can terminate leases more freely at the end of the term.
Step 2: Communicate and Negotiate with Your Landlord
Once you decide to renew a lease agreement, notify your landlord in writing, ideally 30–60 days before your lease ends (or sooner, based on your lease terms). This written notice protects you legally and gives your landlord time to prepare paperwork.
At this point, you should also:
- Ask if there will be rent increases and by how much.
- Inquire about any policy changes (e.g., guest limits, pet deposits).
- Make requests for repairs or upgrades.
Step 3: Confirm the Lease Renewal in Writing
It’s important to confirm your intention to renew a lease agreement via email or letter as verbal agreements aren’t enough. Request a written lease renewal document that includes:
- The new lease term dates
- Updated rent amount
- Any changes to responsibilities or policies
- Signatures from both parties
Step 4: Sign the Renewal Agreement
After reviewing the final lease renewal document, it’s time to sign and secure your housing for the next term
Make sure all agreed-upon changes are correctly reflected and no unexpected clauses have been added. If everything looks correct:
- Sign the lease and date it
- Keep a copy for your personal records (digital and/or physical)
If the lease is delivered electronically, signing via a trusted e-signature platform (like DocuSign or HelloSign) is legally valid in most states.
How Much Notice Should You Give for Lease Renewal?
Most lease agreements require tenants to notify the landlord of their intent to renew a lease agreement (or vacate) 30 to 60 days before the lease ends. However, some leases may specify longer periods, especially in competitive markets.
If you're unsure, follow this general guideline:
- 30 days is the national standard in most U.S. cities.
- 60 days may be required in states like Florida or Illinois.
- 90 days is sometimes expected for luxury or multi-year leases
Failing to provide sufficient notice could result in:
- Loss of renewal rights
- Automatic rent increases
- Eviction or conversion to a costly month-to-month lease
Tenant Rights and Lease Obligations During Renewal
As you move into a renewed lease term, you should understand how your rights as a tenant continue or change and what obligations you’re expected to uphold under the new agreement.
Your Rights When Renewing
Tenants have the right to fair treatment and legal transparency during renewal of tenancy agreement.
Your landlord cannot change terms arbitrarily without your agreement. You have the right to:
- Review and negotiate new terms before signing.
- Decline to renew a lease agreement and vacate without penalty, provided you meet notice requirements.
- Dispute illegal clauses, such as discriminatory policies or unlawful rent increases.
- Request reasonable accommodations under the Fair Housing Act, if applicable.
Additionally, in some rent-controlled or rent-stabilized areas (like New York City), landlords are required by law to offer renewal options unless they have legal grounds for non-renewal.
Your Lease Obligations
Just as landlords have obligations, so do tenants!
By renewing your lease, you agree to continue meeting your prior responsibilities:
- Paying rent on time
- Maintaining the property in good condition
- Following community rules and occupancy limits
- Notifying the landlord of issues promptly
Always read the fine print and ask for clarification when needed.
What If You’re Not Renewing? Know Your Options
Not to renew a lease agreement? You’re not out of options. There are different paths available to suit your situation.
Month-to-Month Transition
If you're unsure about your next steps (maybe you're waiting on a job offer or still looking for a new place), you might be able to switch to a month-to-month lease. This allows you to:
- Stay in the unit beyond your lease term
- Pay rent monthly without a long-term commitment
- Leave with only 30 days' notice (depending on state laws)
Keep in mind: landlords can also end month-to-month leases with proper notice, and they may charge a premium for the added flexibility.
Notice Periods Required by Law
Each state has laws about how much notice tenants must provide before moving out. Generally:
- 30 days' notice is the norm across many states
- Some jurisdictions (like NYC or CA) may require 60 days for longer leases
- Not giving proper notice may lead to loss of deposit or extra rent charges
Final Inspection and Deposit Tips
Before you move out, request a walk-through inspection with your landlord. This gives you a chance to fix any issues before they deduct money from your deposit.
Tips for a successful move-out:
- Clean thoroughly, especially high-traffic areas, the kitchen, and the bathrooms
- Repair small damages (e.g., nail holes, scuffed walls)
- Document everything with time-stamped photos
According to the U.S. Office of Housing, landlords must return deposits within a reasonable timeline, which could span from 14–30 days according to state-specific law.
Landlord Responsibilities During Lease Renewal
As the lease term ends, landlords must communicate clearly, fairly, and within legal timelines.
When and How to Notify Tenants About Lease Renewal
In most states, landlords are required to notify tenants of their intention to renew a lease agreement, change, or terminate a lease at least:
- 30 days before lease end (standard)
- 60–90 days for longer-term or rent-controlled leases
Best practices include:
- Written notice via certified mail or email
- Clear explanation of next steps (renew, negotiate, or vacate)
- Instructions for signing the renewal of tenancy agreement or giving notice
Failing to notify tenants on time can result in automatic lease continuation in some states (e.g., a month-to-month rollover).
Handling Rent Increase Notices Legally
In most jurisdictions, this includes providing written notice at least 30 days in advance for increases under 10%, and 60 days or more for larger hikes. Some cities with rent control laws limit how much the rent can be increased each year, often tying it to inflation rates.
Rent hikes must be clearly stated in the renewal offer and justified by factors like rising property taxes or market trends. Tenants have the right to negotiate or refuse the increase without penalty, provided they comply with notice requirements.
Managing Lease Term Changes from the Landlord’s Side
Landlords may also propose updates to lease terms, such as changes in the lease duration, pet policies, or responsibility for utilities and maintenance. These changes must be communicated in writing before renewal, and they cannot be enforced unless both parties agree and sign the updated lease.
Tenants should read all revisions carefully and voice any concerns or counter-proposals before committing.
New Lease Terms to Expect and Negotiate in 2025
Currently, rental markets shift and new regulations emerge. Lease terms are also evolving.
Rent Increases and Fee Changes
One of the most common adjustments tenants encounter is a rent increase. Alongside rent, landlords are increasingly adding additional fees. It’s wise to ask whether fees can be waived or bundled into your rent.
For example, In California, rent increases are regulated under the Tenant Protection Act of 2019 (AB 1482), which limits how much landlords can raise rent annually. For most properties covered under this law, rent can only increase by 5% of the current rent plus the local inflation rate, or 10% total—whichever is lower.
Changes in Lease Length or Flexibility
Lease flexibility is also shifting in 2025. More landlords are offering customized lease lengths, such as six-month, nine-month, or even “flex-term” leases, to accommodate varying tenant needs and market conditions.
Some leases now include buy-out clauses that allow tenants to exit early with a fixed penalty, a valuable feature for those with uncertain timelines.
Additional Costs (Maintenance, Parking, etc.)
Beyond rent, tenants should watch for new or adjusted charges related to maintenance, parking, and utilities. Some landlords are introducing maintenance cost-sharing models, where tenants are responsible for the first portion of a repair bill (e.g., the first $50 of any service call). Parking spaces, once included in rent, are increasingly being priced separately, especially in high-demand areas.
Tips to Negotiate Better Terms for Your Lease Renewal
With the right approach and a little prep, you can negotiate terms that better fit your lifestyle and budget.
Asking for Rent Discounts or Incentives
Even in a competitive market, landlords are often open to small concessions. If you’ve been a reliable tenant who pays rent on time, keeps the property in good shape, and hasn’t caused issues, you have leverage. Don’t be afraid to ask for a modest rent reduction, or at the very least, to hold your rent steady.
You can also request perks like a free month of rent, waived fees, or a discount for paying multiple months upfront.
Negotiate for Flexibility (Subletting, Pets, etc.)
A lease that fits your life is just as valuable as one with affordable rent. Ask about subletting flexibility, whether pet restrictions can be eased, or if early termination clauses can be added. In some cases, landlords may allow these changes with added deposits or monthly fees.
Using Market Data and Tenant History to Your Advantage
Before signing, do a quick scan of rental listings in your area. Are similar units going for less? Is your building offering move-in specials to new tenants? Use this information to show your landlord what’s competitive. Combine that with your own tenant history to justify why they should offer you favorable terms.
Keep Communication Professional and Timely
When approaching your landlord, keep your tone professional and your requests specific. A polite email that outlines your questions or counter-offer often goes further than you think.
Know When to Walk Away or Request a Month-to-Month Lease
Don’t be afraid to walk away. You can also ask about switching to a month-to-month lease, giving you breathing room while you search for something better. Flexibility often comes at a slightly higher rent, but for many renters, it’s worth the tradeoff.
Bonus: Checklist of Key Questions to Ask Before Lease Renewal
Take a look at our handy checklist! You can copy, print, or share it with your friends and family.
Questions to Ask Before You Renew Your Lease:
Final Thoughts
Renew a lease agreement only after you’ve weighed the pros and cons, reviewed updated terms, and clarified expectations with your landlord. With housing trends shifting and new clauses appearing in 2025 leases, it’s more important to update the guidelines! In addition, LeaseRunner will publish up-to-date guides on our blog promptly to keep you in the know.
FAQs
Q1. How does renewing a lease work?
Before the lease ends, your landlord will send a renewal offer, possibly with updated terms like rent changes or policy updates. If you agree to the new terms, you’ll sign the renewal and continue living there without moving out.
Q2. When should you renew a lease?
You should aim to renew a lease agreement about 30 to 60 days before your current lease ends, depending on your state laws and lease terms. Giving notice early gives you time to review new terms, negotiate if needed, or plan to move if you choose not to renew.
Q3. Can you renew a lease on an apartment?
Yes! You can renew a lease on an apartment as long as both you and your landlord agree to the new terms. Most apartment leases are renewed annually, and management typically reaches out with renewal offers a few weeks or months before the lease ends.
