Renew or Extend a Lease

[Debra Humphries]

My tenants 2 year lease expires in about a month.  They would like to renew the lease for another 2 years.  (they have been great tenants.  Have paid their rent on time every month).  Should I have them sign a new 2 year lease or should I extend the current lease for another 2 years.  The only thing that is changing from the current lease are the dates of the 2 year term and the number of tenants.  All other terms of the lease are the same.  The rental property is located in Bowie, MD.  Thanks for your help.

[Theresa Harris]

You can just extend the lease, but if they've been there for 2 years, you might want to up the rent a bit.   Just add a statement at the end that the lease is being extended until (insert date) and a rate of (insert amount). I'm sure your property taxes and insurance have increased.  Even if it is $25/month, that is an extra $600 over 2 years.