Lease Renewal Letter – Overview, Format, Free Templates

Your tenant has been a joy to have around for the past nine to twelve months. There haven’t been any noise complaints to worry about. Their contact for broken items or problems around the property has been minimal. And they always pay their rent on time. Now the time is near their lease’s end, and you want to keep them around. Filling that vacancy is not fun, and you would rather keep the tenant you already have. If this is the case for you on your properties, then it is time to consider sending a lease renewal letter.

Throughout this article, we will consider you as the landlord of your own properties and walk you through every step you should take when you would like to write a renewal letter for your tenants.

Free Downloadable Templates

Many property owners may be lost on how to write a renewal letter to their tenants. There are many templates available to download for free, which will provide you with information on how to write out these letters. You can choose the right template for your needs and then fill in the correct information according to your situation.

Professional Editable Lease Renewal Letter Template 01 for Word File

Professional Editable Lease Renewal Letter Template 02 for Word Document

Professional Editable Lease Renewal Letter Template 03 for Word Document

Professional Editable Lease Renewal Letter Template 04 for Word Document

Professional Editable Lease Renewal Letter Template 05 for Word Document

Professional Editable Lease Renewal Letter Template 06 for Word Document

Professional Editable Lease Renewal Letter Template 07 for Word Document

Professional Editable Lease Renewal Letter Template 08 for Word Document

    What is a Lease Renewal Letter?

    Lease renewal letter is a document that you, as a landlord, will prepare when you wish to prolong the current rental agreement with the tenant. It can include information on any changes that the landlord would like to make to the current lease, such as raising the rent or extending how long the old lease lasts.

    The landlord is free to make the changes they would like in the lease, but they will not go into effect until the current lease is over. The tenant also has the right to refuse to extend the lease or go with the terms of the new lease. When this happens, they will be able to move out of the property when their lease is over, and the landlord will need to find new tenants to fill up the property.

    When and Why should You Send it?

    The landlord will need to send out the letter with plenty of time for their tenant to receive the letter and make a decision before their current lease is over. Local law will vary on this, but many require this letter to be sent out a minimum of 90 days before the lease expires. The earlier you can send it out, the easier it is for the tenant to look for a new place, and you are a new tenant if new terms of the lease can’t be reached.

    There are a number of benefits that the landlord can receive when they choose to do a lease renewal rather than looking through the market and finding a new tenant. Finding new tenants can cost a lot of money. The landlord will need to pay for advertising, cleaning after the other tenant leaves, screening fees, and maintenance. This can add up. If your current tenant stays on the property, you can get another year of rent without incurring any costs.

    Also, if you, as the landlord, cannot get a renter lined up when the current tenant leaves, there is a risk that rental income will be lost until you find someone new. You will also be responsible for all the costs of utilities and maintaining the property. If your tenant wants to move out, you have to do a lot of work to get a new tenant in the door. If they decide to stay, it can save you a lot of time. By keeping your old tenant, you already know the tenant will pay on time and take care of the property. This can take a lot of stress out of being a landlord.

    Therefore, the letter is beneficial to both the landlord and the tenant. When they can both agree on new terms, it takes out some of the questioning and uncertainty about what will happen when the current lease is over. Whether the tenant decides to stay on the property and agree to the new terms or decides to leave, sending a renewal letter will help both parties know what to expect and make new plans.

    But How It Works

    Writing a lease agreement does not need to be difficult. With a few simple steps, you can get the work done and have a great tenant stay on your property without searching for someone new.

    Some of the steps you can take to prepare your letter include:

    Step 1: Write the lease renewal letter

    This letter is an important document between the tenant and their landlord. It helps the landlord set new terms, such as a change in the rental price, while also letting the tenant know if they can stay in the property for another year if they choose.

    This letter is there to let the tenant know that their lease will expire soon and can help you figure out whether they intend to stay or would like to move on to somewhere else. Sending this out before the lease is over will help give you time to prepare to find a new tenant.

    Write this letter to include any and all changes that you intend to make to the lease. If the current rent is still good for you, it could just include an extension of the lease terms for another year and no other changes. It will be up to you which changes to implement, but make sure you get it in writing.

    Step 2: Send the letter

    Once the letter is written, it is time for you to send that letter out to the tenant. You should give them a deadline to inform you of their decision, whether they plan to extend the lease or not. This gives both of you time to make other plans if the lease is not acceptable to the tenant and they wish to move.

    Step 3: Wait for the tenant’s response

    Some tenants will agree to the new lease terms, happily sign the paperwork, and send it back to you. Others may decide they would like to sign a month-to-month lease and see where things go. If you agree to this change, you will need to agree to the new terms or terminate the lease before it expires.

    In some states, when the original lease expires, it will automatically change to month-to-month instead. This will continue to renew until either you or the tenant notify each other about wanting to end the lease, which needs to be done a minimum of 30 days in advance.

    Step 4: Prepare a new lease agreement

    If the tenant agrees to stay, whether with the new lease or on a month-to-month basis, you will need to prepare the new lease agreement. When this is filled out, you and the tenant must sign it to make it valid.

    Contents of Lease Renewal Letter

    As you work to write out the letter, you need to make sure that you include the right information from the beginning. The more information you can include about the new lease terms and how it all works for the following year, the fewer questions you will have from the tenant and the faster the process will go.

    Some of the information to include is:

    Your information

    To help avoid confusion when you send the letter, include some of your personal information. You will want to include your name and company name if you have registered as such already. You can include your address and any other pertinent information that will help the tenant know it is you.

    Personal information

    After your personal information is put down, you need to include information about the tenant. You will want to include their name, the unit they are staying in, and any contact information you have for them. You should have this information from the original lease.

    Details about the property

    This is where you list out the address and rental unit of the tenant to avoid confusion. Make sure to provide complete address details by stating the street name, area, and city name. If it is an apartment, do not forget to include the apartment number too.

    Net rent amount

    This is the amount that you would charge in rent for an additional year of renting the property. You should complete research ahead of time to determine the new rent you want to charge. Look at average rental amounts in your area for similar properties before deciding. If the rent has gone way up in your area,  you may want to consider a percentage increase on the current rent to not drive the tenant away. Mention that increase along with the net rent amount in the letter.

    The original lease agreement indication

    Somewhere in the letter,  you must include information about the original lease agreement. This can include the original lease terms and the rent the tenant has been paying. This helps to avoid confusion between you and the tenant.

    The extension period

    Most leases will be renewed on a year-by-year basis, but you may choose to do it for a different length of time. If the tenant has already stayed at the property for a long time, they may be interested in extending the lease for two or three years. This can take the stress from you and can help you keep a good tenant for longer. Include options for the lease extension too.

    Proposed start and end date

    This will frequently start right after the original lease is done and go for another year if the tenant agrees. Adding the start and end dates, rather than assuming it, helps get it all in writing. You can also leave this open to negotiations with the tenant if you would like them to stay longer.

    Any additional renewal terms

    This will depend on the original lease and how you would like to change it. The tenant and you may have discussed allowing a pet of some kind or an additional roommate. You will need to add these to the lease.


    This can include information on when the tenant should reply back on if they would like to extend the lease. Give them a little time to determine whether they would like to stay. Leave room for any signatures and attachments as necessary in the lease agreement.

    For most landlords, this process will be simple. They can just show the new rental amount and the lease length before asking the tenant to let them know if they agree to the changes. If there are special situations about the lease, the information may need to be added too.

    Sample Letter

    Your lease renewal letter can be as simple or as complicated as you would like. The information above needs to be present, but you can keep it down to just a few sentences and still keep all the information inside, while other renewal letters may be more in-depth and take up more space.

    Given below is a good sample letter for lease renewal that you can easily follow:

    Sample 01

    Subject: Lease Renewal for 456 Tenant Street, Apartment 5B

    Dear Ms. Doe,

    I hope this letter finds you well. As the lease agreement for your residence at 456 Tenant Street, Apartment 5B, is approaching its expiration date on March 31, 20XX, I am writing to discuss the renewal of your lease.

    It has been a pleasure having you as a tenant over the past year. I am happy to offer you the opportunity to renew your lease for another 12-month term. The terms of the renewal will remain consistent with your current lease agreement, with a few adjustments:

    1. Monthly Rent: The monthly rent for the new lease term will be $1,200, reflecting a slight increase due to market conditions. This new rate will be effective from April 1, 20XX.

    2. Lease Term: The renewed lease term will commence on April 1, 20XX, and will expire on March 31, 20XX.

    3. Other Terms: All other terms and conditions stated in your current lease agreement, including maintenance responsibilities and the pet policy, will remain unchanged.

    Please let me know your decision regarding the lease renewal by February 15, 20XX. If you choose to renew the lease, kindly sign and return the attached renewal agreement by this date. If you decide not to renew, please inform me by the same date to allow ample time for necessary arrangements.

    Should you have any questions or wish to discuss the lease terms further, please feel free to contact me at (555) 123-4567 or via email. I look forward to your continued tenancy and am committed to ensuring your residence remains comfortable and enjoyable.

    Thank you for your prompt attention to this matter. I await your response.


    John Smith


    Attachment: Lease Renewal Agreement


    The lease renewal letter provided serves as an effective guide due to its clear structure and professional tone, which facilitates straightforward and respectful communication between landlord and tenant. It includes specific details like names, addresses, lease terms, and financial figures, ensuring clarity and reducing the potential for misunderstandings. 

    Key information such as the new rent amount, lease duration, and response deadline are highlighted, making it easy for the tenant to understand the changes and important dates. The letter’s openness to communication by inviting questions or discussions fosters a positive landlord-tenant relationship and addresses concerns proactively. Additionally, setting a clear response deadline is crucial for efficient planning and process progression. The inclusion of a reminder about the attached lease renewal agreement underscores the attention to practical details, ensuring the tenant is aware of all necessary documentation. 

    In summary, this letter serves as a comprehensive guide by combining legal formalities with clear, respectful communication. It ensures that all necessary information is conveyed effectively, facilitating a smooth lease renewal process

    Frequently Asked Questions

    Do you have to renew a lease with your existing tenants?

    You do not need to renew a lease with your existing tenants. If that tenant has been a problem, has disrupted the other tenants, does not pay on time, finds himself a new tenant, and ends the lease when its term is up. You may need to issue a lease non-renewal letter in a timely manner to help the tenant have time to find new lodgings and move out.
    If the tenant has been a good tenant, kept things organized, took care of the place, and paid their rent on time, then you may want to provide them with a lease renewal letter to keep them around. It is much easier to keep the tenant you have now than to search for someone else and risk having the place empty for several months.

    What if your tenant wants to negotiate the lease renewal terms?

    Your tenant may try to negotiate the lease renewal terms with you. If they want to move someone else into the apartment or place with them or are not happy with the amount you would like to raise the rent, they may try to negotiate a better term.
    As the landlord, it is up to you whether you wish to negotiate. You do not need to do this, and if the tenant does not agree to the terms, they will simply move out at the end of the lease term. It may be worth hearing the tenant out, though, especially if they have not been a problem tenant. Giving in a little may mean the tenant stays another year or two, which keeps your stream of rent steady and saves you time having to find a new tenant.

    What is a lease non-renewal letter?

    Another option that you can choose is a lease non-renewal letter. This is your written notice that you do not intend to renew the lease with the tenant. You may have a number of reasons why you do not want to renew the lease with that tenant, including:
    – The tenant has caused a number of problems.
    – The tenant has violated their lease.
    – You would like to find a new tenant for a number of other reasons
    – You are looking to sell the property.
    As the landlord, it is up to you to decide whether you would like to send a renewal letter or a non-renewal letter to your tenants at the end of the lease term.

    About This Article

    Terry M. Keller
    Authored by:
    Legal Contract Writing for Real Estate, Real Estate Law Specialist
    Terry M. Keller, Principal and Managing Attorney at Keller Law Offices, is a distinguished expert in real estate law. With foundational experience at the U.S. Attorney’s Office in Tennessee, he founded his firm in Nashville and Chicago, rapidly carving a niche in legal contract writing and real estate legalities. Terry excels in drafting comprehensive real estate contracts and guiding clients through intricate transactions and disputes. His analytical skills, combined with adept negotiation tactics, make him a trusted advisor for a spectrum of real estate stakeholders. Recognized in renowned legal circles, Terry's dedication to client success and legal precision solidifies his reputation as a leading real estate law authority.

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