Handling Lease Renewals the Right Way
Lease renewal is where a lot of avoidable turnover happens — not because a tenant wants to leave, but because the renewal process was handled poorly or too late.
Start Early
Reaching out 60-90 days before lease expiration gives both sides time to plan, whether that means negotiating a rent adjustment or, if the tenant is moving on, starting the marketing process without a vacancy gap.
Setting the Renewal Rent
Compare current market rent for similar properties before setting a renewal number. A modest, market-justified increase is easier for a good tenant to accept than a steep jump with no clear rationale — and it's cheaper than losing them and re-leasing from scratch.
Weigh Renewal Against Turnover Cost
Turnover isn't free: marketing, screening, potential vacancy, and turnover maintenance all cost money. In many cases, a smaller increase that keeps a reliable tenant in place beats a larger increase that pushes them out.
Documenting the Renewal
A renewal should be documented with a signed addendum or new lease, not a verbal agreement or an assumed month-to-month rollover, to keep terms clear for both parties.
When a Tenant Won't Renew
If a tenant gives notice they're not renewing, that early notice window becomes valuable time to start marketing before the unit goes vacant, minimizing the income gap between tenants.
Frequently Asked Questions
60-90 days before lease expiration gives enough time to negotiate terms or start marketing if the tenant isn't renewing, avoiding a vacancy gap either way.
Not necessarily — weigh a modest, market-justified increase against the real cost of turnover; keeping a reliable tenant is often worth more than maximizing every renewal.
