Lease Renewal Strategies for Landlords (2025)
Retaining good tenants saves you money on turnover costs, vacancy loss, and tenant screening. A strategic approach to lease renewals helps you keep reliable tenants while maintaining fair market rents.
Start Early - 90 Days Out
Begin the renewal conversation 60-90 days before lease expiration. This gives both parties time to plan.
- Review the tenant's payment history and lease compliance
- Research current market rents in your area
- Assess property condition from recent inspections
- Decide on any rent increase or lease changes
- Send renewal offer letter 60-90 days before expiration
- Give tenant 2-3 weeks to respond
- Have backup plans if tenant declines
Determine Fair Rent Increases
Balance maximizing income with tenant retention. Excessive increases drive away good tenants.
- Research comparable rents on Zillow, Rentometer
- Consider annual increases of 3-5% for market adjustments
- Factor in your rising costs (taxes, insurance, maintenance)
- Calculate turnover cost (typically 1-2 months rent)
- Offer smaller increases for longer lease commitments
- Consider current tenant value vs. market rent gap
- Check rent control laws in your area
Add Value to Justify Increases
Tenants accept rent increases better when they receive something in return.
- Make minor upgrades before renewal discussions
- Fix any outstanding maintenance issues
- Consider appliance upgrades
- Offer small improvements (new paint, fixtures)
- Add amenities if possible (parking, storage)
- Highlight your responsiveness as a landlord
- Remind them of market rate comparisons
Negotiate Effectively
Be prepared for negotiation. Good tenants may push back, and compromise can benefit everyone.
- Know your minimum acceptable rent
- Offer multi-year lease discounts
- Be willing to phase in larger increases
- Consider trade-offs (higher rent vs. included utilities)
- Document all agreements in writing
- Set clear deadlines for decisions
- Stay professional and solution-focused
Handle Non-Renewals Gracefully
Sometimes tenants leave. Handle transitions professionally to protect your property.
- Confirm move-out date in writing
- Schedule move-out inspection in advance
- Provide move-out checklist to tenant
- Document property condition with photos
- Begin marketing for new tenant immediately
- Process security deposit within legal timeframe
- Conduct any needed repairs quickly
Frequently Asked Questions
In most areas without rent control, you can raise rent by any amount with proper notice. However, 3-5% annual increases are common and accepted. Large increases (10%+) often cause tenants to leave, which can cost more than the increase would generate.
Turnover typically costs 1-2 months rent or more. Costs include: vacancy time (1-4 weeks), cleaning/repairs ($200-2000), advertising ($100-500), and your time screening new tenants. A $1,500 apartment might cost $2,000-4,000 in turnover.
Send renewal offers 60-90 days before lease expiration. This gives tenants time to consider, you time to find new tenants if they decline, and both parties time to complete paperwork before the current lease ends.
Month-to-month gives flexibility but less security. Many landlords charge 10-15% more for month-to-month terms. Consider offering it for good tenants who need flexibility, but incentivize annual leases for stability.
Be responsive to maintenance requests, respect their privacy, keep rent increases reasonable, make small improvements, communicate professionally, and acknowledge good payment history. Sometimes the best tenants just need to feel valued.
Calculate Your Rent Increase
Use our rent increase calculator to determine a fair increase amount.
Calculate Rent IncreaseIn This Guide
- Start Early - 90 Days Out
- Determine Fair Rent Increases
- Add Value to Justify Increases
- Negotiate Effectively
- Handle Non-Renewals Gracefully
- FAQs