Tenant Landlord Lease Renewal Letter Template (pdf, doc)

Transcript Search in video Welcome! 0:00 – As a landlord, 0:01 you want to keep good tenants in your rental property. 0:03 Lease renewals can help achieve this goal 0:05 while ensuring that both parties are on the same page. 0:08 In this video, we’ll cover everything you need to know 0:10 about lease renewal letters, including the purpose, 0:13 how to write one, and where to find free templates. 0:16 So if you’re ready to learn more about lease renewals, 0:18 then let’s get started. 0:20 (upbeat music) When should landlords send a renewal letter to tenants? 0:23 When should landlords send a renewal letter to tenants? 0:27 Ideally, landlords should send tenants 0:29 a lease renewal letter with enough time. 0:31 With this document, they know the lessee’s decision 0:34 and prevent their rental business from stopping 0:36 if those who occupy the property plan to leave. 0:39 If they decide not to continue with the agreement, 0:41 property owners must also notify lessees as soon as possible 0:44 to make sure they have enough time to find a new tenant. 0:47 However, some states have a set timeframe 0:49 indicating when landlords are required 0:51 to send tenants a lease renewal letter. 0:53 The period depends on the lease term 0:55 that both parties agreed to. 0:57 If it was not addressed in the original contract, 0:59 landlords must consider their state’s laws. 1:01 In most states, 1:02 the lease renewal notice period is 30 to 60 days. 1:05 If landlords don’t send a letter within that timeframe, 1:07 the rental arrangement becomes a month-to-month lease 1:10 as soon as the current lease expires. 1:12 Some states don’t require property owners 1:14 to send a letter within a specific period, 1:17 however, doing so before the lease end date 1:19 can bring several benefits, 1:20 including tenants would have enough time to make a decision Benefits of a renewal letter 1:23 and inform landlords about it. 1:25 Both parties could negotiate the new conditions 1:27 or changes for a lease renewal agreement. 1:29 Landlords would have time to screen potential tenants 1:31 or advertise the rental property 1:33 if current lessees decide not to renew the agreement. What should a lease renewal letter include? 1:36 What should a lease renewal letter include? 1:40 Those who own or manage a rental property should be aware 1:43 of their estate’s requirements on lease renewals 1:46 and the timeframe for sending letters or notices 1:49 to make sure they comply with local laws. 1:51 Additionally, landlords must know what to include 1:53 in these documents and be prepared to submit them 1:56 before the original lease expires. 1:58 We’ll share some templates at the end, 1:59 but let’s check what you should include 2:01 in a lease renewal letter. 2:02 Details that a lease renewal letter should include Details that a lease renewal letter should include 2:05 landlord and tenant names, 2:07 both parties’ contact information, 2:09 date when landlords sent the letter, 2:12 whether landlord wants to renew the lease agreement or not, 2:14 copy of the current lease agreement, 2:17 property address and number, 2:18 date tenants must pay the last payment, 2:20 existing lease expiration date, 2:21 deadline for tenants’ response, 2:23 property owners’ signature, and tenants’ acknowledgement. 2:27 If landlords expect to renew the lease, 2:30 this letter may also include the following information, 2:32 new monthly payment, new lease conditions, 2:34 including terms, rates, and dates, 2:36 changes to the original lease agreement, 2:38 conditions added to the new lease agreement, 2:41 what the tenant must do if they want to renew the lease. 2:44 The lease renewal letter must also include 2:45 this additional information if landlords don’t want 2:48 to continue with the rental agreement. 2:50 Date the tenant must vacate the rental property, 2:52 if landlords allow the original lease to expire 2:55 and become a month-to-month rental agreement, 2:57 explain what a month-to-month rental is, 2:59 reasons for not renewing the lease. 3:02 It’s mandatory only in some states. 3:04 How to send a letter to renew a lease agreement. How to send a letter to renew a lease agreement? 3:08 Property owners and managers can send a lease renewal letter 3:11 by mail, email, or in person. 3:14 However, they should always follow a few steps 3:16 to ensure they have a receipt 3:17 or other required documentation. 3:19 Sending the lease renewal letter 3:20 by restricted certified mail is a good option 3:23 as it requires the tenants to sign a receipt. 3:25 However, landlords can also deliver the letter in person 3:28 and ask the tenants to sign a document 3:30 indicating that they received the notice. 3:32 A lease renewal letter can also be sent 3:34 with delivery and receipts to document 3:36 that it has been delivered and received by the tenant. 3:38 In addition, property owners should keep a copy 3:40 of the notice 3:41 and a notation on the mean they use to send it. What should landlords consider before sending a lease renewal letter? 3:44 What should landlords consider 3:46 before sending a lease renewal letter? 3:48 Landlords must be sure 3:50 they want to enter into a new rental lease agreement 3:53 before submitting this document. 3:54 Therefore, they must consider some key aspects. 3:57 Here are some questions that property owners and managers 3:59 should answer to determine if a lease renewal agreement 4:02 is a good option. 4:04 Do you want to keep quality tenants? 4:06 If the current lessees pay rent on time 4:09 or keep the unit in good condition, 4:11 a lease renewal could be a smart move. 4:13 Is the original lease period expiring in 90 days? 4:17 As mentioned, landlords should send a lease renewal letter 4:21 before the timeframe expires. 4:22 Therefore, checking local landlord tenant laws is essential. 4:26 Do you plan to change the rent price or some terms? 4:30 A lease agreement renewal allows property owners 4:33 to make some changes 4:34 to the conditions set in the original contract. 4:37 How long do you want to renew the rental agreement? 4:40 Landlords can offer lease renewals for any timeframe, 4:44 but it’s common to do so for the same length. 4:47 Would you agree to a month-to-month lease renewal? 4:50 It’s another good way to keep good tenants 4:52 if they don’t want a long-term lease. 4:55 When do you expect to receive a response from the tenant? 4:59 A lease renewal letter must also include 5:01 when landlords expect a response from the tenants. Renewing lease agreement terms 5:04 Renewing lease agreement terms. 5:07 Landlords who expect to alter some conditions 5:10 in the rental agreement 5:11 must also include that information in the letter. 5:14 Overall, property owners may consider the following changes 5:17 for a lease renewal. 5:18 Increase in the rent price to reflect the current market, 5:21 rent price reduction to encourage good tenants to stay 5:24 in the property, change to a month-to-month lease 5:26 or if the landlord plans to sell the property, 5:29 terms or potential solutions to issues that arose 5:31 during the existing lease period. 5:33 In other words, 5:34 landlords can send a lease renewal letter to negotiate this. 5:38 Rules or policies, rent price, security deposit, 5:42 lease duration, renters insurance requirements, 5:45 and payment methods. 5:46 Should landlords renew a lease? Should landlords renew a lease? 5:49 Property owners don’t have to renew a lease. 5:52 They have the right to decide 5:54 if they want the existing tenant to stay on the property 5:56 and come to a new agreement. 5:58 Some states have landlord tenant laws 6:00 that define some circumstances 6:02 when property owners or managers 6:03 cannot end an original rental agreement, 6:06 even if the lease term ends. 6:07 However, they’re very limited. 6:09 In addition, ending a tenant’s lease is considered 6:11 part of the landlord’s rights 6:13 if they duly inform the tenants of their decision 6:16 in accordance with state requirements. 6:18 If a landlord doesn’t want to renew the lease 6:20 after the rental period ends, 6:21 they must send a written confirmation 6:23 with some instructions that typically include the following, 6:26 returning keys, cleaning all of the appliance properly, 6:29 removing personal items, removing trash, 6:32 repairing any damages that tenants or the guest 6:35 may have caused to the property, 6:36 suspend cable and phone services. Thank you for watching! 6:38 And that’s all for now. 6:40 We hope this video has been informative and helpful to you. 6:43 Remember, sending a lease renewal letter 6:45 can help you keep great tenants 6:47 and maintain a positive relationship with them. 6:49 If you have any questions or comments, 6:51 please feel free to leave them below. 6:53 Be sure to check out the link in the description 6:55 for a free lease renewal letter template 6:57 and any other helpful resources to you. 6:59 Don’t forget to subscribe to our channel 7:01 for more informative videos 7:03 for landlords and property managers. 7:04 Thank you so much for watching 7:06 and we’ll see you in the next one. 7:08 (upbeat music)