Should you renew your lease with your existing property manager? If you enjoy where you live and want to remain there, it is wise to consider staying, but that's after you've spent enough time examining the new lease and ensuring it meets your objectives. Here are some things to keep in mind.

Lease Renewal

Lease renewal involves extending your current lease or signing a new agreement to continue residing at the property. A new agreement may offer different terms and conditions. It's essential to ensure that any renewed or new lease remains affordable and that you are aware of any changes to the rules.

Understanding Lease Terms

Be sure you look at all factors before deciding to renew. You'll want to consider:

• The effective date of the new lease.
• The name on the lease.
• Permitted residents.
• Property rules.
• The new cost.

For the property owner, keeping a good tenant can mean renewing a lease to meet the tenant's expectations. Yet, costs rise, and risks change. If you notice anything in your new lease that seems different, contact the landlord and inquire. Renew all components of your lease before moving forward with signing it.

The Renewal Process

Recognize that the renewal process takes some time. While it can be relatively quick, especially if you only need to sign a new document, you still need time to make decisions. Several things should happen:

• 30 to 60 days before the expiration of the existing lease, your landlord may approach you about renewing your lease.
• If you choose to renew your lease, you can do so any time before the old lease expires. Email or write a note to the property manager that you plan to renew.
• If you do not plan to renew, send an email or letter that states that you do not plan to renew and that you will be leaving the property by the end of the lease.

Rent Increases

In many situations, rent can increase or decrease from one lease term to the next. Rent hikes typically range from 2 to 5 percent based on area comparables. Your rent may increase if you live in an area with increasing rental rates due to limited availability. Conversely, rents decrease if there's an oversupply or reduced demand in your area. Even if you want to stay in your current place, you should still know where area rents are heading.

Remember that if you received rental concessions on a previous lease, such as a discounted rate because rents in your area had fallen, these concessions might not apply in the next term. If rents rebound after a decrease, you could see your lease rate adjust accordingly, potentially resulting in a significant increase from the discounted rate.

Negotiating Terms

In most situations, you can negotiate the terms of your rental agreement. That includes the rent increase amount and factors such as the end date for your lease. If you know you will be moving out in six months, you may want to move to a month-to-month lease.

Another option is to renew your lease but move to another apartment, one that is larger or has better amenities. That is something to bring up with your property management company now.

Lease Termination

Sometimes, you cannot renew or do not want to remain at a property. That is not uncommon. Whether you are just moving or you cannot afford the higher cost of the new lease, you must provide notification of what's occurring. Here's what to do when the time comes to move on.

Giving Notice

Give the property owner as much notice as possible about your impending departure. The thing to remember is that they cannot make you leave early. Still, they can make you pay more if you don't give the necessary notice (as specified in your existing contract). Therefore, giving as much notice as possible, generally at least 30 days, is best for the best results.

Early Termination

If you need to terminate your lease early, you may be able to do so based on the terms in your lease agreement. For example, some leases state that you can terminate your lease early by paying a fee. Others may require you to lose your security deposit or to pay the lease until the property manager finds a replacement tenant.

End of Lease Walkthrough

At the close of your lease, you'll need to walk through the property with your property manager to document the condition. Generally, this is like the initial walkthrough. You'll want to verify with the property manager that there's no damage noted. Have them sign a paper stating this to get your security deposit.

Returning Keys and Vacating the Property

At the end of your lease, you should conduct a walkthrough of the property with your property manager to assess its condition. This process is similar to the initial inspection at your lease's start. It is crucial to document any damages or that you are returning the property in the same condition as you occupied it. For a clear record, have the property manager sign a document confirming the property's condition, which can aid in the return of your security deposit.

Understanding Your Rights

If you're unsure what the property manager requires as a part of your new lease or the cancellation of your existing lease, contact a professional for guidance. Your state's laws will govern:

• Timeline requirements
• Getting your security deposit back
• Disputes about conditions
• Discrimination matters
• Associated fees

Takeaways

Remember that:

• You must decide to stay or leave thirty days before your lease expires.
• Communicate with your property manager what your goal is.
• Negotiate the terms of your lease agreement to stay there.
• Provide notice early on if you plan to move out.