The most common mistake landlords and managers make with lease renewals is setting up a brand new lease. When a lease is about to expire, use the renewal flow in Hemlane instead. Here is the recommended approach:
- Offer two options*: month-to-month at a higher price, or an annual lease at a slightly lower price.
- If the tenant selects month-to-month, send them a Rent Increase Notice.
- If the tenant selects an annual lease, send them a Lease Renewal Notice.
*Check your state and county laws on rent increases.
What Should a Lease Renewal Include?
For an official notice, refer to the current lease and create a one-page document (a lease renewal) with the following:
- Lease extension date: The new end date for the lease, and whether it will terminate or go month-to-month after that date.
- Rent adjustment: Any change to the rent amount for the new period. Check your state’s law on the notice required for rent increases, such as 30 to 60 days.
- Other changes to terms: Any other terms in the lease that are changing from the original.
You can also create a renewal directly in Hemlane using the Create a renewal with Hemlane template option, described in Step 2 below.
How to Start a Lease Renewal
Step 1: Click Renew Lease
Navigate to the Tenants & Leases tab, locate the group in need of renewal, and click their name.
Click the Renew lease button in the group's overview.
You can also locate a tenant group with a lease that needs renewing by using the Ending Soon section at the top of the Tenants and Leases tab.
Step 2: Choose Your Renewal Method
Select your renewal options
Send, edit, or skip a renewal message
- Upload an already signed document
- Use e-signing with a document of your own
- Create a renewal with Hemlane using the template option
Step 3: Define Your New Terms and Adjust Your Financials
Click Edit to define the new lease terms for the renewal, then continue to any needed financial changes.
If you are uploading your own document, upload it from your device at this step.
Step 4: Apply Signature Fields, Review, and Send
If you are using e-signing, flip between all relevant signees to add the signature, text, or date fields in the appropriate sections of the renewal. When you are happy with the placements, click continue. Then confirm all details one final time and click Send Renewal.
What Happens Next?
The tenant will receive notifications about the renewal and their e-signature requirements. They will find their signing request in their dashboard.
As the owner or manager, you will see the renewal as Awaiting Signatures within the tenant group’s Leases and Documents section until all tenant signatures are complete.
Once all tenant signatures are collected, you will be notified and the renewal will return to the Leases and Documents section with a Ready to Sign status. Click Sign lease to complete your own signature.
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