Lease Renewal Letter: What to Include (with Free Template)

When you own a rental property, there is a lot to know and understand. Managing an investment property can be challenging, whether trying to find a good tenant, dealing with renters’ complaints, or figuring out how to evict a problem tenant legally.

However, there is one thing that is typically easy about being a landlord: renewing a lease. If you have a good tenant in a rental property who pays their rent and doesn’t cause any issues, the best option is to keep them there for as long as possible. When you send a lease renewal letter, you should cover the basics, including any new lease terms, and give the tenant a deadline to sign.

At Eaton Realty, we work with property investors throughout Hillsborough County to help them find and manage rental properties. We can handle the heavy lifting of property management for you, from maintenance requests to tenant screening to getting a unit listed to marketing a rental property. Reach out today to speak with a member of our team about your rental property.

Want to learn even more about finding and retaining great tenants? Contact us to speak with an experienced Hillsborough County property manager.

Should I Renew My Tenant’s Lease?

When a tenant’s lease ends, landlords are faced with a decision: do they want to renew the lease? Assuming that the tenant hasn’t given notice of their intent to move out, a landlord will have to decide whether or not they want to continue the lease.

The first - and perhaps most obvious - consideration is whether or not the renter is a “good tenant.” While this can mean different things to different people, most landlords consider someone a good tenant if they pay their rent in full and on time and don’t cause any problems (such as property damage or noise violations). Generally, if you have a good tenant in your rental property, you’ll probably want to keep them there.

However, there are other things to consider, such as current market conditions. Across the country, including Florida, the demand for single-family rental properties has increased significantly. With rising interest rates and house prices, it isn’t surprising that many people choose to rent rather than buy a home.

For landlords, you should think carefully about whether it makes sense to renew a lease - even for a “good” tenant. If your current renters aren’t paying fair market value and you don’t think they’ll tolerate a rent increase, then it may make sense not to renew and list the property for rent instead.

Of course, there is never a guarantee that you’ll be able to find new tenants at your desired price - or that any new tenants you find will be “good tenants.” It may be better to keep existing tenants, even at a lower rent, than to undergo the expense of getting the property ready to rent and to take the chance of getting a tenant who doesn’t pay rent or who damages the unit. An experienced property manager can help you make an informed decision about the best choice for your rental property.

There may be other factors that go into your decision about renewing a lease. Choosing to renew a lease has several advantages, such as:

Eliminating vacancies and the associated carrying costs and lost rental income

Avoiding the expenses of prepping the unit to be put back on the market for rent

Reducing the risk of leasing the property to a bad tenant, which can happen even with the best tenant screening.

There are downsides to renewing a lease, such as the inability to update the property while a tenant is still there or keeping a tenant who may not be the best renter. An existing tenant may refuse to pay a higher rent or want to negotiate lease terms.

If you decide to renew your current tenant’s lease, the next step is to send them a lease renewal letter. While Florida law does not require that lease renewal letters be sent within a particular time frame, it is generally a good idea to give your tenant at least a month’s notice so that they have time to consider it and so that they don’t decide to leave. Importantly, you must provide adequate notice to tenants if you choose not to renew their lease (which is based on the length of the lease). Below, we outline what should be included in a lease renewal letter and offer a sample for you to use.

What Should Be Included in a Lease Renewal Letter?

A lease renewal letter should contain certain basic information. Generally, it should tell your tenants what they need to do if they want to renew the lease or if they want to vacate. You should send the lease renewal letter 2 to 3 months before the expiration of the lease.

A lease renewal letter should include:

The date that you are sending the letter

The name and information of both the tenant and landlord (or property manager)

Property address, including unit number

The expiration date of the current lease

The current rent amount

The proposed new rent amount, if applicable

The terms of the new lease (i.e., length of lease and whether other provisions of the lease will remain the same)

The deadline for the tenant to respond to the lease renewal notice

This letter can be sent by mail or email or posted on the tenant’s door (or another place where they will likely find it). If the tenant doesn’t want to renew the lease, they will have to either vacate the premises upon expiration of the lease or face eviction. You should confirm with the tenant the date that the lease expires, and remind them that they must be out of the property on that date. Remember: landlords must follow a specific process to evict a tenant and cannot engage in self-help eviction (such as changing the locks).

If the tenant decides to renew the lease, you will need to draw up a new lease and make arrangements for both parties to sign. In many cases, landlords simply update the existing lease with new dates. You may also need to create a new lease to reflect any new terms, such as:

An increased security deposit;

A new rent amount;

A different method of paying the rent (such as through an online system);

Changes such as adding a roommate or a pet to the lease;

Converting the lease to a month-to-month or other type of lease; or

Requiring the tenant to obtain renters’ insurance if they don’t have a policy.

Any changes to the lease must conform with both Florida and federal law. For example, even if you have a “no pets” policy for your rental property, you will still be required to allow a service animal or emotional support pet - and you can’t contract away that responsibility in a lease. Similarly, your tenant screening process and lease terms cannot be discriminatory in any way.

Free Lease Renewal Letter Template

You can save time and avoid having to draft up your own lease renewal letter with our free lease renewal letter template. You can download the template by clicking the button below.

Download The Free Template

Other Considerations

If your home is in a community with a Homeowner’s Association, you may have to provide the HOA board or management company a copy of the new lease, updated background checks, and abide by their leasing requirements such as length of renewal.

How Eaton Realty Can Help

Lease renewals might be one of the simplest things about being a landlord, but they still require some consideration and some work. An experienced property manager can handle lease renewal letters for you, including tracking the status of each letter and taking the appropriate action based on a renter’s response. We can also help you decide whether it makes sense to keep a current tenant or to put the unit back on the market for rent or sale.

Based in Lithia, Florida, Eaton Realty offers a range of real estate services, including property management. We are well-versed in the Hillsborough County real estate market, including rental properties. We use this knowledge to help property investors and landlords make smart decisions about buying, selling, and managing their rental properties.

If you’d like to learn more, fill out our online contact form or give us a call at 813-672-8022 to talk to a team member.

More Free Rental Property Templates

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