Lease Renewal Process

Managing the Lease Renewal Process in Leaseora

Lease renewals are a critical part of property management, allowing you to retain quality tenants and maintain steady rental income. Leaseora streamlines the renewal process with automated reminders, customizable renewal terms, and digital signing capabilities. This guide will walk you through the complete lease renewal workflow.

Lease Renewal Process Overview

Step 1: Renewal Planning and Preparation

Effective renewal management starts with proper planning:

Setting Up Renewal Reminders

Leaseora can automatically notify you when leases are approaching expiration:

1. Go to "Settings" > "Notifications" > "Lease Reminders"
2. Configure when you want to receive renewal reminders:
   • 90 days before expiration (recommended for initial planning)
   • 60 days before expiration (recommended for tenant notification)
   • 30 days before expiration (final reminder)
3. Select your preferred notification method (email, SMS, in-app)
4. Click "Save Reminder Settings"

Reviewing Lease Performance

Before initiating renewal, review the lease and tenant performance:

• Payment History: Check if the tenant has consistently paid rent on time
• Maintenance Requests: Review the frequency and nature of maintenance issues
• Lease Compliance: Verify that the tenant has adhered to lease terms
• Property Condition: Consider scheduling an inspection before renewal
• Market Analysis: Review current market rents for similar properties

Step 2: Tenant Communication

Timely and clear communication with tenants is essential for successful renewals:

Initial Renewal Notification

Leaseora can automatically send renewal notifications to tenants:

1. Go to "Settings" > "Notifications" > "Tenant Notifications"
2. Enable "Lease Expiration Notices" and set the timing (60 days before expiration is recommended)
3. Customize the notification message template
4. Click "Save Notification Settings"

To manually send a renewal notification:

1. Go to the lease details page
2. Click "Send Renewal Notice"
3. Select a template or create a custom message
4. Review and send the notification

Tenant Response Tracking

Track tenant responses to renewal offers:

• Tenants can respond directly through their tenant portal
• Responses are automatically recorded in the lease record
• You'll receive notifications when tenants respond
• The lease status will update based on the tenant's response (e.g., "Renewal Pending," "Renewal Accepted," "Not Renewing")

Step 3: Defining Renewal Terms

If the tenant expresses interest in renewing, you'll need to define the terms for the new lease period:

Standard Renewal Options

Leaseora allows you to offer multiple renewal options to tenants:

1. From the lease details page, click "Create Renewal Offer"
2. Select "Standard Renewal Options"
3. Add up to three different renewal options:
   • Option 1: e.g., 12-month lease at $X/month
   • Option 2: e.g., 6-month lease at $Y/month
   • Option 3: e.g., Month-to-month at $Z/month
4. For each option, specify:
   • Lease term length
   • New rent amount
   • Any changes to other fees or terms
   • Offer expiration date
5. Click "Send Renewal Options" to present these choices to the tenant

Custom Renewal Terms

For more complex renewals or when negotiating specific terms:

1. From the lease details page, click "Create Renewal Offer"
2. Select "Custom Renewal"
3. Define all lease terms, including:
   • New lease start and end dates
   • Updated rent amount
   • Modified or new lease clauses
   • Changes to amenities or services
   • Any other special terms or conditions
4. Click "Preview Renewal" to review the terms
5. Click "Send Custom Renewal Offer" to present it to the tenant

Negotiating Renewal Terms

If the tenant requests modifications to your renewal offer:

1. The tenant can submit a counter-offer through their portal
2. You'll receive a notification about the counter-offer
3. Review the tenant's proposed terms
4. You can:
   • Accept the counter-offer
   • Reject the counter-offer
   • Create a new counter-offer
   • Schedule a discussion with the tenant
5. All negotiation history is recorded in the system for reference

Step 4: Generating the Renewal Document

Once renewal terms are agreed upon, create the official renewal document:

Renewal Document Types

Leaseora offers two approaches to lease renewals:

• Lease Amendment: A shorter document that extends the current lease with specific changes
• New Lease Agreement: A complete new lease that replaces the original

To generate a lease amendment:

1. From the lease details page, click "Generate Renewal"
2. Select "Lease Amendment"
3. Confirm the agreed-upon terms
4. The system will generate an amendment document that references the original lease and specifies only the changes
5. Review the amendment and make any necessary adjustments
6. Click "Finalize Amendment" when ready

To generate a new lease agreement:

1. From the lease details page, click "Generate Renewal"
2. Select "New Lease Agreement"
3. The system will pre-fill a new lease with the agreed-upon terms
4. Review all sections of the new lease
5. Make any necessary adjustments or updates
6. Click "Finalize Lease" when ready

Step 5: Signing and Activating the Renewal

The final step is to get the renewal document signed and activate it in the system:

Electronic Signing Process

Leaseora's electronic signature feature streamlines the renewal signing process:

1. After finalizing the renewal document, click "Send for Signature"
2. Select all parties who need to sign (tenant(s) and landlord/property manager)
3. Add a personalized message if desired
4. Click "Send" to distribute the document for signatures
5. Each party will receive an email with instructions for signing
6. The system tracks the status of each signature
7. You'll receive notifications as signatures are completed

Manual Signing Option

If electronic signatures aren't preferred:

1. Click "Download for Manual Signing"
2. Print the renewal document
3. Collect physical signatures from all parties
4. Scan the signed document
5. Upload it to Leaseora by clicking "Upload Signed Document"

Activating the Renewed Lease

Once all signatures are collected:

1. The system will prompt you to activate the renewal
2. Click "Activate Renewal"
3. Confirm the activation
4. The system will:
   • Update the lease status to "Renewed"
   • Apply the new lease terms and dates
   • Update the rent schedule with the new amount
   • Send confirmation to all parties
   • Store the signed renewal document in the lease records

Bulk Lease Renewals

For property managers with multiple leases expiring around the same time, Leaseora offers a bulk renewal feature:

1. Go to "Leases" > "Expiring Leases"
2. Select the leases you want to renew together
3. Click "Bulk Renewal"
4. Choose a renewal approach:
   • Standard Increase: Apply the same percentage or fixed increase to all selected leases
   • Individual Settings: Configure specific terms for each lease
5. Review all renewal terms
6. Click "Generate Renewals" to create all renewal documents
7. Send them for signature individually or in bulk

Handling Non-Renewals

If a tenant decides not to renew their lease:

1. Update the lease status to "Not Renewing"
2. Set the move-out date
3. Schedule a pre-move-out inspection
4. Send the tenant move-out instructions
5. Begin marketing the property for new tenants
6. For detailed guidance on this process, see our Lease Termination guide

Frequently Asked Questions