Question about extending a lease agreement

[John Truong]

Hello,

I have a lease agreement that ends at the end of May. The lease automatically renews to month-to month starting June. The property is in Houston, TX, and I am using the form CJM 186253v.6.

I want to give my tenants the choice of renewing the 12-month contract at the same monthly rent or stay at month-to-month at $100 higher (or $50 higher with 6-month contract).

I am planning to send them a courtesy text about these options, and ask them how they want to proceed. 

Then what to do next? How do I make it official? What paperwork to sign? I found the Texas Association of Realtors Form 2005, but I cannot use it because I am not a realtor.

Thank you in advance for your help.
-John

[Eric Thomson]

Hello John. Give the tenants 30 days written notice that month-to-month rent will increase and list the day the new rent will take effect. Give them a separate notice that if they would like to sign a 12-month contract you will let them lock in their current rate.

If they agree to a new 12-month contract then you can use the same contract you used in the past, if you are otherwise happy with it. Just change the start and end date and make sure the start date is after the end date of the current contract. If they do not agree to a 12-month contract then they may be about to move out so you should begin finding a new tenant happy to agree to a 12-month term.