First Lease Renewal

[Autumn G.]

I’m approaching my first lease renewal. I expect to offer to keep the rental rate the same based on the market, but know when I was a renter there was always an option to go month-to-month for a higher price. While I’d prefer a long term renewal, I wondered how you typically determine a month-to-month rate if the tenant decides to go that route? 

[Ke Nan Wang]

This is roughly the message I send to my tenant 60 days before lease renewal:

Dear tenant, 

Insert nice words....

Your lease is expiring on [date]

You have the following options:

Renew your lease for 12 month at [rate] (If market rate is $100 higher I tend to increase something, if market rate is $200 higher I use (current rate + market rate)/2 for the new rate, if market rate is same or lower I would keep it the same rate)

Move to a month-to-month lease at [rate x 1.25]

Vacate from the premise on or before [lease end date]

Please let me know by [deadline]. (Sometimes depend on the market, I even throw in some bonus such as if they sign a lease renewal before end of the week we can get them some rent credit for the upcoming month, if the market is hot then I won't say anything)