As your lease is nearing its end, it's time to decide whether you want to move out or renew your lease. If your landlord is instating a rent increase, you may want to weigh the benefits of renewing your lease to finding a new place altogether.
No matter your decision, it's imperative to give proper notice and understand the terms your new lease before signing. It may also be possible to negotiate the terms of your new lease to meet your needs.
- Give appropriate notice: Review your current lease to verify the amount of notice you must give to renew or terminate your lease. Most leases require at least 30 to 60 days but some require 90 days or more. If you wish to renew your lease, it's advisable to give notice as soon as possible. If you are within the time frame set by your landlord and have been a good tenant, renewing your lease under the same terms could prevent a rent increase. If the lease has an automatic renewal clause in it, you could be stuck with the same terms for another year if you don't talk to your landlord in time.
- Talk to the landlord or property manager about your options: Your landlord may plan to raise your rent as part of the terms of your new lease. You may be able to negotiate the increase, which is discussed in further detail below. If you have any issue with your apartment unit, you should bring that to your landlord's attention. They may agree to make repairs or updates to the space in order to ensure your renewal. You may even be able to relocate to a different unit depending on your needs.
- Make your decision: Once you've discussed the possibilities with the landlord or property manager, it's time to decide. Would it cost you more to renew your lease or can you rent similar accommodations for less? Does your current lifestyle allow you to commit to another year or more?
- Notify your landlord/property manager: Once you have decided if you will renew or terminate your lease, write your landlord a letter or visit the rental office to notify him or her of your decision. If you opt to send a letter, be sure it is dated and received by the deadline stated in the current lease. Include any specifications you previously discussed being included in your new lease, such as repairs and agreed-upon rent price.
- Read and sign your new lease: Once you receive with your new lease, read it thoroughly. All the terms discussed and agreed upon should be clearly illustrated. This includes rent price, lease length, necessary repairs and other important details. Depending on the state, a lease can be legally binding -- only sign once you're sure that you fully understand the lease.
Negotiate your rent increase if possible
If your landlord is asking for an increase in rent, it could deter you from renewing your lease. However, negotiating is always a possibility. Your landlord has reason for you to stay; finding a new tenant to fill a vacant apartment can result in money loss, especially if your lease ends during the slower seasons of fall and winter. Read these tips on how to negotiate an outcome that benefits you and your landlord.
- Research the laws in your area to confirm that the percentage of increase is legal. Your landlord may not be permitted to raise your rent more than a certain amount at a time. While yearly increases are often inevitable (unless the apartment is rent-controlled), there are often legal limits set to protect renters. Research state rental laws and local ordinances to ensure that the rent increase is legal.
- Research the rent for comparable apartments in your city. Find out prices for similar apartments in the area. If you can find an apartment of comparable size and accommodation for much less, you can bring that up to your landlord during negotiation.
- Offer an upfront payment. Agreeing to pay ahead is a good way to negotiate lower rent payments. Offer to pay the first three months' in exchange for a lower monthly rate -- receiving advance payment may incentivize your landlord to give you a break on the increase.
- Offer to sign a longer lease. Finding a new tenant can be difficult and expensive for landlords. If you sign an extended lease, you can convince them to agree to your terms. Offer to sign a two-year lease in exchange for a lower monthly rate.
- Remind your landlord why you are a great tenant. List the qualities you possess as a tenant to remind your landlord why you are a desirable renter to keep in the building. Mention your timely rent payments, lack of bounced checks and compliance with all rules and regulations.
If you end up renewing your lease, consider the following
- Talk to your landlord about switching to a month-to-month lease instead of committing for another year
- The start date on the new lease should be the same date as the end of the old lease
- The security deposit from the former rental period should carry over
- If you signed "yes" on the renewal notice, your signature could be considered a contract and make you unable to renegotiate the terms of the rental
If you can't negotiate your desired terms, it may be time to find a new apartment. While searching, remember these five important apartment hunting tips to find a great place at a great price. Once you choose your new apartment, make sure you know what to do to relocate to a new apartment with ease on moving day.