How are lease extensions and lease renewals different from each other? Is there a difference between them?
You are approaching the end of your lease, and your landlord has contacted you to see if you would like to renew or extend it.
Property management companies in Orlando help landlords by ensuring proper lease renewing or vacating the property.
In the event that you renew your lease, your landlord may allow you to stay in your apartment, but you will have to sign a new lease for the same term as the existing one. Extending your lease means keeping your current lease but extending the term.
Let's take a look at them one by one.
What is a Lease Renewal?
Renewal is a new lease based on an existing lease. In most leases, existing terms are transferred into a new lease with an updated rental term. Lease renewal comes under the core workflow of Orlando property management companies. As a result of your lease renewal, you may be required to sign a new lease which is slightly different from your previous lease in some cases.
Lease renewal agreements are also called:
Residential Lease Renewal Agreement
Lease Renewal Form
Lease Renewal Letter
Lease Renewal Offer
What's the best time to renew a lease?
Landlords want to renew their lease if:
Renewal of a residential tenancy under the same conditions
The tenant is kept for another year (or a different lease term) and rent is increased
Lease terms should be updated
How to renew a lease
According to the best Orlando property management companies, a proper way to offer a lease renewal is via email or another virtual method of delivery. Be sure to include the date of expiration of the current lease, the terms of the lease renewal, and the cost associated with the renewal.
It is essential that both parties sign a new lease every month, even if the lease is month-to-month. If you allow a month-to-month lease, you can justify raising the rent as long as you provide flexibility and convenience to your tenant.
What exactly is a Lease Extension?
Tenants and landlords can write an extension letter to the lease to notify the other party that they wish to continue renting the property. It's a good way to begin a lease extension discussion and let the other party know you're considering it. A lease extension, rather than creating a new contract, simply extends the existing one for a specified period of time. Leases are typically extended for a short period of time, such as three months.
Having lease extension forms on hand is useful when:
If you give the tenant time to find a new place
You'd like to keep your property occupied while looking for a new tenant.
If you're thinking of renovating or selling, you'll need more time.
How to extend a lease
You have the option to extend your lease before it expires. You can notify the lessor that you want to extend the lease, renegotiate the terms, and extend the lease.
An extension agreement should be signed as soon as the parties have agreed on the updated terms and have been notified of them.
Should You Renew Or Extend?
Which is preferable: renewing your current apartment or looking for your next dream apartment? Both have advantages and disadvantages. After the lease extension expires, you might be able to sign a lease renewal anyway.
If you're not planning on moving anytime soon, lease renewal is an excellent idea. You may be able to negotiate a better deal during this time.
Consult the best property management company in Orlando if you are considering extending your lease as a landowner and ensure smooth communication with your rentals.
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