When you rent an apartment with an annual lease, every year you have to make a decision. You generally have three options: Renew your lease for another term, switch to a month-to-month lease, or move out. There are several factors to take into consideration before deciding whether or not to renew your lease.
If it’s time to renew your lease, you’ve been in that location for at least a year. You probably know what you like and don’t like about the apartment and the general location of the unit as well as what you would change about it if you could. You can use this information to help you determine whether to renew your lease. There can be many reasons to stay, and just as many reasons to decide that you want to move somewhere else. Over the course of a single year, many significant life changes can arise that impact our daily lives.
Reasons To Renew a Lease
Some reasons to renew your lease may include that you like the apartment and it’s convenient to your current lifestyle. Another factor to stay may be that you have a good relationship with your landlord or apartment manager. If management is on top of maintenance and repairs for your unit, this makes for an enjoyable living arrangement. Also, if your unit is part of a cluster of apartments, you may have friends and a feeling of community in the complex, which makes it harder to leave.
Reasons Not To Renew a Lease
There may also be factors that make you want to find another apartment. Landlords may use a new lease as a time to increase rent, and if you’re already stretching your budget to make ends meet, a rent increase may be a deal breaker. You may have loud or unpleasant neighbors. The neighborhood may not be one you enjoy, now that you’ve lived there for some time. The location may not be convenient for your job or other recreational activities.
If your lifestyle has changed over the year, your current apartment may no longer be your best choice. For instance, you may want to get a roommate and a larger apartment, or perhaps your roommate moved out so you need a smaller place. You may have changed jobs or have had another lifestyle change like starting a new relationship, so the place that was once ideal has become unsuitable.
Benefits of Renewing a Lease
When considering the drawbacks to staying where you are, it’s also important to consider the benefits of renewing your current lease:
- It’s easier: Renewing a lease removes the burden of having to look for a new place to live and actually go through the intensive process of moving, which can be time-consuming and expensive.
- It’s cheaper: Even if your rent goes up slightly, it’s cheaper to pay a little bit more each month than to pay a security deposit for a new apartment along with moving expenses.
- It’s comfortable: You’ve already been living there for a while, so you have a habitat and routine established. You’re comfortable and don’t have to face uncertainty about where you’ll live or whether you’ll like your new place or not. Also, you’re already familiar with the landlord, location, and terms of the rental property.
- It builds your relationship with your landlord: If your landlord is offering a lease renewal, they want you to stay. Renewing your lease builds on the relationship you have with your landlord. Being a reliable renter increases your chances of an excellent reference when it’s time for you to move on.
- It establishes a rental history: It also indicates stability if you live at the same location for two or more years, which may look good on applications for credit, jobs, or other apartments.
Alternative to Renewing an Annual Lease
If you want to move but aren’t quite ready, there may be an alternative available to renewing your lease for an entire year. Many landlords allow a short-term month-to-month lease if you plan on leaving but aren’t quite ready yet. This gives you more time to look for another place, and it also gives your landlord a heads-up that you may move out soon. Generally, when you accept a month-to-month lease, it’s with the intention that you aren’t going to be renting there for another full year.
How To Renew a Lease
Since it’s usually the easiest option for a landlord to keep dependable renters as long as possible, they’re usually open to renewing a lease. If you are a reliable renter who respects the rental property and consistently pays rent on time, you’re probably a great candidate for renewing your lease.
You’ll probably receive notification from your landlord via email, letter, or in person when it’s time to renew your lease. Generally, you’ll receive this 60 to 90 days before your lease expires. If you don’t hear from the property manager, reach out to them to discuss renewing the lease.
Here are some questions to consider when you’re renewing your lease:
- Will the rent remain the same?
- Does your unit need any maintenance or repair that you need to arrange with your landlord?
- Are there any changes from your current lease to the new lease?
Carefully read the new rental agreement, noting the deadline for your response. It’s important to let your landlord know your intentions regarding the lease, because if you miss the deadline they may rent out your apartment even if you intended to stay. As soon as you’ve made your decision, sign and return the new lease to your landlord.
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