Handling lease renewals and rent increases
Best practices for renewing leases, communicating rent increases, and retaining good tenants.
The Renewal Conversation
A lease expiration is a crossroads. Your tenant can leave (vacancy costs), or they can stay (stable income). How you handle renewals matters.
When to Start
Begin the conversation 60-90 days before the lease ends. RentMouse reminds you automatically when leases are approaching expiration.
Evaluating Your Tenant
Before offering a renewal, consider:
- Payment History: Have they paid on time?
- Property Care: How's the unit look?
- Relationship: Are they reasonable to work with?
Good tenants are worth keeping—even if it means a smaller rent increase.
Deciding on Rent
Consider:
- Market Rate: What are similar units renting for?
- Your Costs: Have property taxes or insurance increased?
- Local Laws: Some areas have rent control. RentMouse flags these.
Communicating the Offer
In RentMouse, go to the lease and click "Offer Renewal". Specify new term, rent, and any changed terms. The tenant can accept, decline, or ask questions—all tracked.
If Increasing Rent
- Be direct about the new amount.
- Explain why: "Due to increased property taxes..."
- Acknowledge their value as a tenant.
- Give adequate notice (typically 30-90 days).
If the Tenant Declines
Confirm move-out date, schedule inspection, and start marketing the unit for new tenants.
Documentation
Always document renewals in writing. RentMouse can generate a renewal addendum that references the original lease and specifies new terms.