How do I set up a lease renewal for tenants?

Lacey B.
  • Updated

The #1 mistake that landlords and managers make with lease renewals is that they set up a new lease. When your lease is about to expire, you will want to:

  1. Offer two options*: (1) month-to-month at a higher price or (2) annual lease at a slightly lower price
  2. If they select monthly, then send to them a "Rent Increase Notice"
  3. If they select annual, then send to them a "Lease Renewal Notice"

For users with access to Rocket Lawyer (Essential and Complete packages only) you can view the documents made available for your account here: 

  1. Rent Increase Notice (Essential and Complete packages only)
  2. Lease Renewal Agreement (Essential and Complete packages only)

* check your state and county laws on rent increases

For a official notice, you can refer to the current lease and then create a one page document (a lease renewal) with the following information:

  1. Lease Extension Date - The new end date for the lease and whether it will terminate or go month-to-month after that date.
  2. Rent Adjustment - Any change to the rent amount for the new extension period. You will want to check your State's law on the notice required fo rental increases, such as 30 to 60 day notice required.
  3. Other Changes to Terms - Any other terms in the lease that may be changing from the original lease.

In Hemlane, there are three steps to take for a lease renewal.

Step 1: Create and upload the lease renewal document

If you are on our Essential or Complete package, you will be able to access the Rocket Lawyer state-specific lease renewal notice. Send it out for signature and then upload it to Hemlane.

 

Step 2: Change the terms in Hemlane

You can change the terms in Hemlane that are reflected on the Tenants & Leases tab. You will visit the Lease group, click their name,  and within the Overview section, you will want to select Edit in the Lease Terms section.

 

Step 3: Adjust the rent under Financials

You will want to check your original recurring rent request to see when it expires. If the request expires at the end of the original lease, then you will set up a new request. In some cases, you will need to cancel the request and create a new one with the adjusted rent amount.

 

 

Keywords: lease renewal, lease expiring, renew lease, rent increase, increase rent, rocket lawyer

Related articles