Renewing a contract tenancy is a process that landlords and tenants go through when the initial lease term comes to an end. It is a crucial step in the renting process as it establishes the continuation of the tenancy, the rental rate, and the terms and conditions that will govern the tenancy for the next period.

Renewal Process

The renewal process typically starts 60 to 90 days before the lease term expires. Either the landlord or the tenant can initiate the renewal process by reaching out to the other party. The landlord can offer a renewal agreement to the tenant that outlines the terms and conditions of the new lease agreement, and the tenant can choose to accept or negotiate the terms given.

If the tenant decides to accept the renewal agreement, they will typically sign it and return it to the landlord before the lease term expires. The landlord will then sign the agreement and provide the tenant with a copy for their records. If the tenant chooses to negotiate the terms offered by the landlord, they can have numerous discussions to come to an agreement that accommodates both parties.

Reasons for Renewal

Tenants may have several reasons to renew their tenancy, the most common of which is the familiarity of the property and the surrounding environment. It is also a chance for continuing the relationship with their landlord, which can be valuable in the long run. Renewal can also provide flexibility for tenants who need to stay in the same location due to work or family commitments.

Landlords may also have reasons for renewing a contract tenancy. It is an opportunity for landlords to retain a good tenant and continue receiving rental income without the risk and expense of advertising the property for rent. Renegotiating the lease agreement also provides an opportunity for landlords to increase rent or adjust other terms of the tenancy.

Conclusion

Renewing a contract tenancy is a common and straightforward process for landlords and tenants alike. It involves renewing the lease agreement, negotiating the terms and conditions, and signing a new lease agreement to continue the tenancy. It is an opportunity for tenants to continue living in a familiar environment and for landlords to secure reliable tenants while maximizing their rental income. Overall, when both parties agree to renew a contract tenancy, it can benefit the landlord and tenant relationship in many ways.