Landlords often write lease renewal letters to their tenants informing them that their current lease is about to expire and proposing a new one either on the same or different terms. Write and send out your lease renewal letter in good time so that the tenant has an opportunity to respond before the expiration of the existing lease term. There are key elements that must be included in a lease renewal letter.
A lease renewal letter is a formal communication, so type it out using standard business format on your official letterhead or that of the property management company. Address it to the tenant including his full name, address and contact details. Date the letter and insert the appropriate salutation.
Setting the Stage
Include a reference section that explains what the letter is about. Expound on the reference in the first paragraph. The introductory statement should explain that according to your records, the current lease with the tenant is about to expire. Specify the start date of the existing lease and the date on which it ends. Offer to renew the lease and be specific about the length of the agreement.
Terms of Renewal
The next paragraph should state the terms of the lease renewal. In most cases, landlords opt to increase the rent in subsequent leases. If you are increasing the rent, indicate the new amount and explain your reasons for the change. But if the rent is going to remain the same, make that clear. Address any concerns that might have arisen during the existing lease, such as late payments or noisy parties. Take the opportunity to inform the client that lease renewal is subject to better conduct or observance of the rental policies. Invite the tenant to contact you with any concerns because this is also likely when he will propose changes.
Request for Response
In a new paragraph, ask the tenant to respond to the letter within a specific time. Since you will be writing the lease renewal letter at least 30 days before the end of the existing lease, ask for a response to your letter in about 10 days. However, it is good business practice to write at least 60 days prior to the lease expiring to give the tenant more time to consider; in the event he chooses to not renew, you will have ample time to find another tenant. If the client does want to renew the lease, you also have enough time to draft and sign a new agreement before the existing one ends.
Conclude the letter with a salutation, your name and signature. If a property management company is managing the property, the person who directly deals with the tenant should be the one to sign.
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