Lease Renewal Guide for Landlords and Tenants – Process & Tips

Look at your rental agreement. There is a date at the bottom. The day your lease ends.

That date comes faster than you think. And when it arrives, you have a choice. Renew or move. Stay or go. Sign again or start over.

For tenants, renewal means stability. Your home continues. No packing. No moving trucks. No new security deposit.

For landlords, renewal means guaranteed income. No vacancy. No advertising costs. No screening new people.

But here is the thing. A lease does not automatically continue forever. It expires. And if you want it to keep going, you need a lease renewal.

This guide covers everything. When to start. How to ask. What can change. What it costs. Mistakes to avoid. Whether you are a tenant who loves their apartment or a landlord with a great renter, this is for you.

Let us begin.

What Is a Lease Renewal?

Lease renewal is simple. Your current lease period ends. You and your landlord agree to continue. You sign a new agreement for another term.

It is not automatic. Well, sometimes it is. Some leases have automatic renewal clauses. But most do not. Most require action from both sides.

What a lease renewal includes:

• New start date
• New end date
• May have new rent amount
• May have updated terms
• Both parties sign

What it is not: It is not a month-to-month continuation. That is different. That is called a holdover tenancy. Renewal means a fresh fixed term. Usually 11 months or one year.

Think of it like a subscription. Your Netflix subscription ends in December. If you want it to continue in January, you renew. Same concept. But with more paperwork and legal weight.

Lease Renewal vs Lease Extension – Key Differences

People use these words interchangeably. They should not.

When do you use renewal? When the lease has ended. Both parties want to continue but may want changes. New rent. New clauses. Fresh start.

When do you use extension? When you need more time but everything stays the same. Maybe the tenant is buying a house and needs three more months. Simple extension works.

Why it matters: Using the wrong one can cause confusion. If you sign an extension when you meant to renew, the old terms continue. Rent stays same. Deposit rules stay same. If you wanted a rent increase, you missed your chance.

When Should You Start the Lease Renewal Process?

Timing matters. Start too late and you stress everyone. Start too early and things may change before the date.

General rule: 60 to 90 days before lease expiry.

For residential leases: 60 days is comfortable. Enough time to discuss, negotiate, and sign. Not so early that plans change.

For commercial leases: 90 to 120 days. Commercial spaces need more planning. Businesses need to budget. They may need to inform customers or update licenses.

Check your lease: Some agreements have a notice period clause. It might say: Tenant must notify landlord of intent to renew at least 60 days before expiry. If you miss that window, you lose the right to renew. The landlord can find someone else.

What if you miss the deadline? Ask anyway. Some landlords are flexible. But they do not have to be. The deadline exists for a reason. Do not test it.

Lease Renewal Process (Step-by-Step)

Here is how renewal actually works. Follow these steps.

Step 1: Review Existing Lease

Read your current agreement. Find the expiry date. Look for renewal clauses. Check notice period requirements. Note any terms you want to change.

Step 2: Send Renewal Notice

Either party can initiate. Usually the landlord sends first. But tenants can ask too.

**Tenant notice:**Dear Landlord, our lease ends on 2026. We would like to stay. Please let us know if terms will change.

**Landlord notice:**Dear Tenant, your lease ends on 2026. Are you interested in renewing? We are reviewing market rent and will share updated terms.

Step 3: Negotiate Terms

This is where things may change. Rent amount. Maintenance responsibilities. Pet policies. Renewal is your chance to adjust.

For tenants: If rent is increasing, negotiate. Point out your good payment history. Mention any repairs needed. Ask for improvements in exchange for higher rent.

For landlords: Decide on rent increase. Check market rates. Consider tenant history. Good tenant? Maybe smaller increase. Problem tenant? Maybe no renewal at all.

Step 4: Draft Renewal Agreement

Once terms are agreed, put it in writing. You can:

• Create a new lease with updated terms
• Use a renewal addendum attached to old lease

What to include:

• Names of parties
• Property address
• New lease term (start and end dates)
• New rent amount
• Updated clauses (if any)
• Signatures

Step 5: Sign & Register

Both parties sign. If your state requires registration, pay stamp duty and register. This makes it legally enforceable.

Step 6: Exchange Copies

Tenant keeps one. Landlord keeps one. Both have proof of agreement.

Residential Lease Renewal

Residential leases are the most common renewal type.

Typical duration 11 months in India. One year in many other countries.

Process Usually straightforward. Landlord asks. Tenant agrees. Rent may increase. New agreement signed.

Registration requirements in India

• If lease is 11 months, registration not mandatory in most states
• But notarized agreement on stamp paper is common
• If lease is 12 months or more, registration required

What tenants should check

• Rent increase percentage
• Any new clauses
• Maintenance charges
• Notice period for leaving early

What landlords should check

• Tenant payment history
• Property condition
• Market rent rates
• Any complaints from neighbors

Residential renewal is usually smooth. Both sides want stability. But do not get casual. Written agreement protects everyone.

Rental Agreement Renewal – What Can Change?

Renewal is not just copy-paste. Things can change.

Rent amount Most common change. Landlords increase rent. Sometimes tenants negotiate a decrease if market has softened.

Security deposit Usually stays same. But if deposit was low and rent increased, landlord may ask for additional deposit.

Maintenance terms Who fixes what? If appliances are aging, clarify responsibility. Some leases shift more maintenance to tenant over time.

Lock-in period Original lease may have had 11-month lock-in. Renewal may have shorter or no lock-in.

Pet policy Want a pet now? Ask during renewal. Landlord may allow with additional deposit.

Utilities inclusion Earlier lease included water? Now landlord may want separate metering. Clarify.

Parking Additional vehicle? Need dedicated spot? Renewal is time to ask.

Do not assume. Everything that changes must be in writing. Verbal promises vanish when disputes arise.

How to Ask a Landlord to Renew a Lease (For Tenants)

You love your apartment. You want to stay. How do you ask?

Timing is everything. Ask 60 days before expiry. Not two weeks before. Landlords appreciate planning.

Be professional. Email works best. Written record. Clear and polite.

Sample email:

Subject: Lease Renewal Request – [Property Address]

Dear [Landlord Name],

Our lease for [property address] ends on 2026. We have enjoyed staying here and would like to renew for another [11 months/one year].

Please let us know if you plan to increase rent or change any terms. We are happy to discuss.

Thank you for being a great landlord.

Best regards,[Your Name]

What if landlord wants you to leave? Ask why. If they are selling, you need notice. If they want higher rent, negotiate. If they just want change, respect their decision but ask for enough time to find new place.

Negotiation tips:

• Mention your on-time payment record
• Point out that you maintain the property well
• Offer to sign longer term for smaller increase
• Ask for upgrades in exchange for higher rent

How to Renew a Lease as a Landlord

You have a good tenant. They pay on time. They do not complain. You want them to stay.

Step 1: Check your records Review their payment history. Any late payments? Any complaints from neighbors? Property condition after inspections?

Step 2: Check market rent What are similar properties renting for? Can you increase rent? How much is fair?

Step 3: Decide on terms Rent increase percentage. Any changes to agreement. Any repairs you will do before renewal.

Step 4: Send notice Reach out 60 to 90 days before expiry.

Sample email:

Subject: Lease Renewal Offer – [Property Address]

Dear [Tenant Name],

Your lease ends on 2026. We would like to offer you a renewal for another [11 months/one year].

The new rent will be [amount] per month, effective 2026. All other terms remain the same. Please find the renewal agreement attached.

Let us know by 2026 if you wish to renew.

Thanks,[Your Name]

Step 5: Handle response If they accept, sign and exchange. If they decline, start marketing the property. If they negotiate, listen. Good tenants are valuable.

Does a Landlord Have to Renew a Lease?

Short answer: No.

Landlords are generally not required to renew. The lease ends. Both parties walk away. No obligation.

Exceptions:

• Some cities have rent control laws that limit non-renewal
• Anti-discrimination laws apply. Cannot refuse renewal based on race, religion, family status, etc.
• Retaliatory non-renewal is illegal in some places. If tenant complained about repairs, landlord cannot refuse renewal to punish them.

For tenants: Do not assume renewal is guaranteed. Even if you are perfect tenant, landlord may have other plans. Selling the property. Moving in themselves. Renovating.

For landlords: You have the right not to renew. But give proper notice. Check local laws for minimum notice period. 30 days is common. 60 days in some places.

How Much Does It Cost to Renew a Lease?

Renewal is cheaper than finding new tenant. But it is not free.

Stamp duty: In India, stamp duty on lease agreement varies by state. For 11-month lease, usually 0.1% to 1% of total rent plus deposit. Small amount but must be paid.

Registration fees: If lease is 12 months or more, registration required. Fees vary by state. Typically 0.5% to 1% of average annual rent.

Documentation charges: Some landlords charge administrative fee. ₹500 to ₹2,000. Not common but exists.

Brokerage: If you used broker originally, they may want fee for renewal. Usually half month’s rent or less. Negotiable.

Notary charges: If not registering, notarization costs ₹100 to ₹500.

Total cost estimate for India: For ₹20,000 monthly rent, 11-month lease:

• Stamp paper: ₹500
• Stamp duty: ₹200 to ₹500
• Notary: ₹200
• Total: Under ₹1,500

Much cheaper than finding new tenant. New tenant costs brokerage (one month rent), advertising, and vacancy loss.

Rent Increase During Lease Renewal

This is the most sensitive part of renewal.

Is increase allowed? Yes. Unless your lease has fixed rent for multiple years. Most residential leases allow increase at renewal.

How much increase? Depends on:

• Market rates
• Local laws (some places cap increases)
• Tenant history
• Property condition

Typical increase 5% to 10% in normal markets. Higher in hot markets. Lower if tenant is excellent.

Negotiating increase Tenants can push back. Show market data. Offer longer term for smaller increase. Point out your good record.

Notice required Landlord must inform before renewal. Cannot surprise tenant on last day. 30 to 60 days notice is standard.

If tenant refuses increase They can decline renewal. Then they must vacate. Or negotiate compromise.

Tip for landlords Small regular increases are better than big jumps every few years. Tenants accept 5% easily. 15% shocks them.

Lease Renewal Agreement Format

What should a renewal agreement include?

Basic details

• Landlord name and address
• Tenant name and address
• Property address

Lease term

• Start date
• End date
• Duration (11 months, 1 year, etc.)

Rent

• Monthly rent amount
• Due date
• Payment method
• Late fee (if any)

Deposit

• Security deposit amount
• Any additional deposit

Clauses carried forward

• Maintenance responsibilities
• Utility arrangements
• Pet policy
• Subletting rules
• Notice period for termination

New clauses (if any)

• Rent increase percentage
• Any new rules

Signatures

• Landlord signature
• Tenant signature
• Date
• Witnesses (if required)

Registration If registering, include space for registrar’s seal and signatures.

Sample simple addendum format

RENEWAL OF LEASE AGREEMENT

This confirms that the lease agreement dated [original date] for property [address] between [landlord] and [tenant] is renewed for a further period of [duration] from [start date] to [end date].

The monthly rent shall be [amount]. All other terms of the original lease remain unchanged.

Signed:

Landlord: ______________ Date: ________

Tenant: _______________ Date: ________

Digital & Mobile Lease Renewals

Technology has changed lease renewals.

E-signatures Platforms like DocuSign, HelloSign, and Adobe Sign allow digital signatures. Legally valid in most countries. No printing. No scanning. No meeting required.

Online payments Rent increases reflected in payment apps. Tenant sees new amount. Pays automatically.

Property management software Tools like Buildium, AppFolio, and Yardi automate renewal notices. Send reminders. Generate agreements. Track signatures.

In India E-stamping available in many states. Digital agreements on platforms like LegalDesk and eSahayak. Growing adoption.

Benefits of digital renewal

• Faster process
• Lower cost (no stamp paper purchase physically)
• Remote signing
• Automatic record keeping
• Reminders for next renewal

Security Ensure platform is secure. Use trusted providers. Keep digital copies backed up.

What Happens If Lease Is Not Renewed?

No renewal. Now what?

Scenario 1: Tenant vacates Tenant moves out by expiry date. Returns keys. Gets deposit back after inspection. Clean break.

Scenario 2: Month-to-month tenancy In some places, if tenant stays and landlord accepts rent, tenancy continues month-to-month. Same terms but no fixed end date. Either party can terminate with proper notice.

Scenario 3: Holdover tenant Tenant stays without permission. Landlord wants them out. Eviction process may start. Legal risk for tenant.

Scenario 4: Negotiation continues Parties discussing but not signed. Communication ongoing. As long as both agree, fine. But risky without written extension.

For tenants: Do not assume staying is okay. Ask. Get something in writing. Even a temporary extension.

For landlords: If you want tenant out, give proper notice. Do not accept rent after expiry if you want vacancy. Accepting rent may create new tenancy rights.

Common Mistakes in Lease Renewal

Avoid these errors.

Mistake 1: No written renewal Verbal agreement. “Yes, you can stay.” Then dispute arises. No proof of terms. Always get it in writing.

Mistake 2: Missing notice period Lease required 60 days notice. You gave 30. Landlord already found new tenant. You lose your home.

Mistake 3: Not updating rent Old rent continues. Landlord forgets to mention increase. Now stuck with lower rent until next renewal.

Mistake 4: Ignoring registration State requires registration for leases over 11 months. You skip it. Agreement not enforceable in court.

Mistake 5: Not inspecting property Landlord renews without inspection. Later finds damage. Too late. Deposit already returned mentally.

Mistake 6: Not reading new terms Tenant signs without reading. New clause says no pets. But you got a dog last month. Now violation.

Mistake 7: Assuming automatic renewal Lease says nothing about automatic renewal. You assume it continues. Landlord assumes you are leaving. Confusion and conflict.

Mistake 8: Not documenting condition Photos at renewal time. Without them, old damage blamed on you at move-out.

Best Practices for Managing Lease End Dates

Stay organized. Never miss a renewal deadline.

Use calendar reminders: Set reminder 90 days before expiry. 60 days. 30 days. Multiple alerts.

Property management software: Tools track all lease dates automatically. Send notifications. Generate reports.

Spreadsheet tracking: For small landlords, simple Excel works. List all tenants. Lease start. Lease end. Days until expiry.

Automated emails: Draft renewal notice templates. Customize and send when reminder pops.

Annual review: Set aside time each year to review all leases. Plan increases. Decide which tenants to keep.

For tenants: Mark your calendar too. Do not rely on landlord to remind you. They may forget. Or they may intentionally wait until last minute to pressure you.

Special Cases

Commercial lease renewal: More complex. Longer terms. Higher stakes. Rent escalation clauses common. Renewal often involves lawyers. Start 6 months before expiry.

Government lease contracts: Tender processes. Renewal may require fresh bidding. Not automatic. Check contract terms carefully.

Rent controlled properties: Special rules. Increase limits. Renewal rights. Know local laws before acting.

Shared leases: Multiple tenants. One leaves. Others want to stay. Renewal may need new agreement with remaining tenants only.

Subletting situations: Original tenant sublets. Main lease ends. Subtenant wants to stay. Complex. Requires involvement of original landlord.

Lease Renewal vs New Tenant Replacement – Cost Comparison

Why renewal beats finding new tenant.

Financial example for ₹25,000 rent:

Renewal cost:

• Stamp duty: ₹500
• Total: ₹500

New tenant cost:

• 20 days vacancy: ₹16,667 lost rent
• Brokerage: ₹25,000
• Painting/repairs: ₹10,000
• Advertising: ₹2,000
• Total: ₹53,667 plus time and stress

Renewal saves money. Good tenants are worth keeping.

Conclusion

Lease renewal is more than paperwork. It is a conversation.

For tenants, it is saying: I like it here. I want to stay. For landlords, it is saying: You are a good tenant. I want to keep you.

When both sides communicate clearly, renewal is smooth. Rent adjusted fairly. Terms updated reasonably. Agreement signed without stress.

Remember these points:

• Start early. 60 days minimum.
• Put everything in writing.
• Know what can change.
• Understand costs involved.
• Respect notice periods.
• Keep copies of everything.

A well-planned lease renewal keeps rental relationships smooth, avoids legal issues, and ensures long-term stability for both landlord and tenant.

Whether you are renewing for the first time or the tenth, treat it with respect. It is your home. Or your investment. Both deserve care.

Now check your calendar. When does your lease expire?

Frequently Asked Questions