Lease renewal agreement template
Use this free lease renewal agreement template next time your tenants want to extend their lease.
Use this free lease renewal agreement template next time your tenants want to extend their lease.
As a landlord or estate agent, having your lease agreements extended can save you time, effort, and resources spent on finding new tenants. This is where a lease renewal agreement comes into play. However, this document may be more complex than it appears at first glance.
In this guide, we'll delve into the ins and outs of lease renewal agreements: their purposes, essential clauses, and a step-by-step guide on how to create one.
A lease renewal agreement is a document that extends the term of an existing lease. It's most useful for landlords and estate agents who have a tenant wishing to continue their occupancy beyond the original lease term.
There are several reasons why you, as a landlord or estate agent, would want to use a lease renewal agreement:
While both lease agreements and lease renewal agreements are pivotal for landlords and estate agents, there are distinct differences between them.
A lease agreement is a contract between a landlord (or an agent) and a tenant that outlines the terms and conditions for renting a property. This document is typically drafted at the beginning of a rental relationship.
On the other hand, a lease renewal agreement is used when the initial lease term is about to end, and both parties wish to extend the tenant's occupancy. The renewal agreement incorporates most of the terms and conditions of the original lease but allows for adjustments.
In essence, a lease agreement sets the initial terms for renting a property, while a lease renewal agreement extends these terms, often with modifications.
The lease agreement forms the basis for the relationship between the landlord and tenant, and the renewal agreement continues this relationship under a renewed set of terms.
Start by thoroughly reviewing the original lease. Look for any clauses related to lease renewal, changes in terms, or any specific conditions.
This review will provide a foundation for the renewal agreement and indicate whether you have the right to renew the lease and under what conditions.
Based on your review and current circumstances, determine if there are terms you wish to amend in the lease renewal.
This might include adjusting the rent based on current market rates or changing other conditions like maintenance responsibilities. Remember, any adjustments must comply with local laws and regulations.
Manually draft the lease renewal agreement. Use the original lease as a guide but make sure to include any new terms you've decided upon.
The draft should identify all parties involved, the property in question, the duration of the new lease term, and updated terms and conditions, among other details.
Once you've completed the draft, arrange a meeting with the tenant to discuss the new agreement. Provide them a copy of the document in advance to allow sufficient time for review.
There will probably be back and forth between parties via email and text at this point. They might even want to seek legal advice, which should be encouraged to ensure that both parties fully understand the terms.
After all the terms have been agreed upon, both you and the tenant should sign the agreement.
As a best practice, keep the original copy in a safe place, and provide a copy to the tenant for their records. This will ensure that both parties have access to the agreed terms, should any disputes arise in the future.
This manual process requires careful attention to detail and time, but it allows you to tailor the lease renewal agreement to fit your unique situation.
As always, you should consider seeking legal advice if you are uncertain about any aspects of the lease renewal agreement.
Juro, a contract management platform, can significantly simplify and streamline the lease renewal process, making it faster, more efficient, and less error-prone. Here's how:
Instead of manually drafting the lease renewal agreement, you can leverage Juro's automated document creation capabilities. With predefined templates, you simply input the necessary details (such as parties involved, property details, term duration, and rent), and the platform automatically generates a professionally formatted agreement.
Juro enables real-time collaboration within the platform, eliminating the need for back-and-forth emails or physical meetings. Both you and your tenant can review, suggest edits, and negotiate terms directly within the document.
With Juro, you can secure electronic signatures from all parties, a feature that speeds up the finalization process. This feature is especially useful if the tenant is not available for an in-person signing.
Juro offers robust version control capabilities. This means you always have access to the latest version of the document, and you can also view the history of changes made. This reduces the risk of errors and misunderstandings.
Juro securely stores all documents in a centralized location, making them easily accessible. The platform's organization and search functions allow for efficient document retrieval, saving you the time you'd spend sifting through physical files or searching through multiple digital folders.
Juro can send automatic reminders when the end of a lease term is approaching, helping you stay ahead of renewal timelines.
In essence, Juro helps to automate and streamline the lease renewal process, reducing administrative burden and the potential for errors. By shifting the process to a digital platform, Juro also offers increased convenience and improved record-keeping capabilities.
To find out more about Juro's contract management software and how it empowers landlords and agencies to manage real estate contracts more efficiently, hit the button below.
Juro is the #1-rated contract platform globally for speed of implementation.
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