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