Lease renewal

[Mohammad Sheatt]

Hello This one a the first time I am going to renew a tenant lease. Can I just do an addendum to the original lease stating all terms remain the same or should I do another whole lease contract ? Thx

[Kim Younkin]

Hi, @Mohammad Sheatt. Does your current lease not have a renewal provision? If not I would recommend having a renewal provision. Here's ours, to help you:

2. LEASE TERM. The Tenant agrees to occupy said Premises for an original term commencing on [("move in date")] ending on [("lease end")]. The Lease shall automatically renew for month to month basis unless notice is given as stated in paragraph 7. 

7. MOVE OUT NOTICE AND RENEWAL. Unless another lease is signed by the parties hereto or unless written notice of termination is given by one party to the other at least 30 days before expiration of the lease, the lease shall be automatically renewed on a month to month basis. At least 30 days prior to due date, written notice of intent to move out must be given to the landlord. This means a full calendar month’s notice. All dates of termination must be the last day of that month. The tenant's move-out notice may not terminate the lease term or renewal period. The tenant's move out notice must terminate the lease on the exact day designated in the move-out notice. VERBAL NOTICE OF VACATE IS NOT SUFFICIENT.

So here is what happens with these provisions. We send out a letter a month before the original 12-month lease ends, asking if they'd like to renew for another 12 months and be bound by the lease as it stands. Usually, unless they are giving notice to move out, they say yes and they sign that letter as the extension of the lease for another year. The letter also refers to Section 7 of our lease and reiterates that they can let the lease renew month-to-month, but tells them there will be a slight rent increase for that. Sometimes they take that option because they're not sure what their plans are, and they pay the increase with the ability to terminate the lease at the next 30-day interval if they choose.

If you don't have any of this in place, perhaps add it to your standard lease and ask them to sign a new lease for the same term they have now so you'll have that issue handled for next time. Good luck and hope that helps!

Kim