Lease renewal agreement template

As a landlord or estate agent, having your lease agreements extended can save you time, effort, and resources spent on finding new tenants.

A robust lease renewal agreement template, or lease renewal form, can make this process quicker and easier.

In this guide, we'll cover the ins and outs of lease renewal agreements from which clauses to include to how to create one.

What is a lease renewal agreement?

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.

These can be residential lease renewal agreements or commercial ones. Both make it easier for tenants to continue using the property after their original lease agreement ends.

Why use a lease renewal agreement?

There are several reasons why you, as a landlord or estate agent, would want to use a lease renewal agreement:

1. To retain tenants: It is usually more cost-effective to retain a reliable tenant than to find a new one. A lease renewal agreement facilitates this.
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2. Certainty: It provides a legal framework to continue the rental relationship, offering certainty for both the tenant and you.
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3. Adjustments: The lease renewal is an opportunity to adjust terms, including rent, based on current market conditions or property improvements.

What is the difference between a lease agreement and a lease renewal agreement?

The main difference is that 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.

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How to create a lease renewal form

Step 1: Review the original lease

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.

Step 2: Decide on any changes

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.

Step 3: Draft the lease renewal agreement

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.

Step 4: Review the agreement with the tenant

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 to negotiate the renewal of the lease agreement.

They might even want to seek legal advice, which should be encouraged to ensure that both parties fully understand the terms.

Step 5: Sign and store the agreement

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.

How to automate the lease renewal agreement process

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:

1. Automated contract creation

Instead of manually drafting the lease renewal agreement, you can leverage Juro's automated contract creation capabilities.

Using predefined contract 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's AI legal assistant can also be used to draft certain clauses of the contract in seconds, making it quick and easy to generate a lease renewal form.

2. Collaboration and negotiation

Juro enables real-time collaboration within the platform, eliminating the need for back-and-forth emails or physical meetings.

Both the landlord and the tenant can review, suggest edits, and negotiate terms directly within the document. This happens within your browser, with no need to switch between tools or new versions of a document.

3. Electronic signing

Juro offers native eSigning functionality, meaning that parties can sign contracts electronically from anywhere, on any device.

This makes it easier to sign lease renewal agreements without the parties having to be present in-person. It also makes the process of getting the lease renewal forms signed much faster and more efficient.

4. Version control

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.

5. Secure storage and tracking

Juro stores all documents in a secure, centralized contract repository, making them easily accessible.

Juro's OCR search functionality also allows for efficient document retrieval, saving you the time you'd spend sifting through physical files or searching through multiple digital folders.

6. Automated reminders

Juro can send automatic reminders when the end of a lease term is approaching, helping you stay ahead of contract renewal timelines.

This helps to automate and streamline the lease renewal process, reducing administrative burden and the potential for errors.

Automate renewal lease agreements in Juro

Juro’s AI contract collaboration platform enables your team to create, execute and manage contracts 10x faster than traditional tools. With Juro, you can:

• Agree contracts 10x faster with AI
• Safely automate 75 per cent of routine contract admin
• Keep control of contracts as volumes grow
• Get instant insight into your contracts’ data

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.