Are you prepared for your next lease renewal?

You never want to be playing catch-up when it comes to renewing a lease. It’s important that you know when current leases are set to expire, and it’s even more important that you reach out to your tenants at least 60 days in advance of that expiration to find out what their plans are. Will they want to renew? Will they be moving out? It’s important that you have plenty of notice to prepare, either way.

When a tenant indicates that they’d like to talk about renewing, that’s usually good news. It means you don’t have to deal with a vacancy or extra turnover costs. Let’s walk through the steps of a lease renewal, understanding the importance of communicating any increase in rent and setting your tenants up for another great year of living in your rental property.

Quick Overview:

Reach out to tenants at least 60 days ahead of the lease expiration.
Decide whether you want to renew your lease agreement with your tenants.
Review the market to decide on rent increases and lease terms.
Communicate with tenants to decide on the new lease.
Use this as an opportunity to continue building your relationship with tenants.

Step 1. Start the Process Early

The renewal process should begin well before the current lease expires. Ideally, we recommend that you put things in motion 60 to 90 days in advance. Starting early gives you time to gauge tenant interest in staying, make decisions about rent adjustments, and begin thinking about how to market the property if the tenant declines to renew.

Many landlords wait too long to bring up renewals, leaving both themselves and their tenants scrambling at the last minute. Proactive communication avoids stress and helps you fill any potential gaps in occupancy.

Step 2. Review Tenant History

Before offering a renewal, assess whether you want to keep the tenant. Not every renter is a good candidate for staying long-term. Some of the questions we encourage you to ask include:

Has the tenant consistently paid rent on time?
Have they respected the lease terms (no unauthorized pets, guests, or subletting)?
Have they cared for the property responsibly?
Has communication been positive and cooperative?

If the tenant has been reliable, a renewal makes sense. If not, it may be time to end the lease and seek a better fit, as disruptive as that can be.

Step 3. Evaluate Market Conditions

Next, analyze the local rental market to determine whether rent adjustments are appropriate. Renewal time is a natural opportunity to increase rent, but this should be done thoughtfully. You don’t want to chase a good tenant out of your property with an unreasonable rent increase. Most tenants expect the rent will go up, but give them a good reason to stay by raising the rent to where the market is. If they can find a cheaper option, they’ll go looking.

Step 4. Decide on Lease Terms

Beyond rent, decide what other terms will apply to the renewed lease. Consider:

Length of lease. Many owners stick to 12-month terms, but shorter or longer terms may be beneficial depending on your goals.
Policy changes. If you want to adjust rules on pets, parking, or utilities, now is the time.
Maintenance responsibilities. Clarify expectations around landscaping, maintenance reporting, or inspections and other shared duties.

Be transparent about changes so tenants can make informed decisions.

Step 5. Communicate with the Tenant

Once you’ve reviewed tenant history, market conditions, and lease terms, reach out to your tenant with a clear renewal offer. Provide a written notice of your renewal offer. This is a legally binding contract we’re working with, so formal communication is necessary. Send a letter or a statement outlining the new rent, lease length, and any policy updates.

Keep things positive. Thank the tenant for their residency and highlight why renewing benefits both of you. Then, give the tenants at least 30 days to decide whether to accept the renewal terms.

A friendly, professional tone increases the likelihood of a positive response.

Step 6. Handle Tenant Responses

Tenants generally fall into three categories when offered a renewal:

They accept immediately. Great news; prepare the paperwork.
They negotiate. Be open to discussion on rent or terms. A slight compromise may be worth keeping a reliable tenant.
They decline. Respect their decision and start marketing the property right away to minimize downtime.

Regardless of their response, handle the interaction professionally to maintain your reputation.

Step 7. Update Administrative Details

After you and your tenants sign the lease renewal, update your property management systems. This includes:

Adjusting rent collection platforms with the new amount.
Notifying maintenance or HOA teams of continued occupancy.
Documenting the renewal in your records for legal and tax purposes.

Attention to these details keeps everything organized and prevents miscommunication.

Step 8. Continue Building the Relationship

Lease renewal is more than just a transaction. It’s an opportunity to strengthen your relationship with tenants. Keep communication open, remain responsive to maintenance requests, and continue showing appreciation.

Tenants who feel valued are more likely to renew again in the future, saving you money on turnover costs and marketing.

Lease renewals are one of the most effective ways to maintain stability and profitability as a rental property owner. By starting early, assessing tenant history, evaluating market conditions, and communicating clearly, you can secure renewals that benefit both you and your tenants.

A well-managed renewal process reduces vacancy risks, saves money on turnover, and creates positive long-term tenant relationships. We know that a lot of owners take for granted that their tenants will renew and see this as merely paperwork. But it’s more than that. It’s about building a sustainable rental business.

Whether you manage one property or many, following this step-by-step guide will make lease renewals smoother, more professional, and more profitable. We can also provide some hands-on support as your local property management partner.

Please contact us at Wess Cason Realty. We provide real estate and property management support in Charlotte and the surrounding areas in Mecklenburg, Union, and Cabarrus County.