A Lease Renewal refers to the process of extending the term of a lease agreement between the landlord (which could be a real estate investor or property management company) and the tenant. This typically involves a review of the terms and conditions under which the property was originally leased and a negotiation between the parties to agree on new or continued terms for the rental.
A lease renewal may involve adjustments to various elements of the lease such as the rental amount, the duration of the new lease period, responsibilities for maintenance, or other provisions. Both the landlord and tenant must agree to the new terms, and the renewal is usually formalized in a written agreement.
Lease renewals are an important aspect of real estate investment because they can provide ongoing, stable income from a property. They also offer a way to maintain occupancy without having to find a new tenant, which can save time and money. Additionally, renewing a lease with an existing tenant may involve less risk than signing a new tenant, as the landlord is already familiar with the tenant’s payment history and overall compliance with the lease terms.