Your lease is up – but you love your apartment. Should you stay or go? Many renters face this situation, wondering, “When a lease is up, can you renew it?”. The good news is you often can – but there are important details to consider before deciding. Let’s break down the ins and outs of lease renewals so you can feel confident in your next steps.
Understanding Lease Renewals
A lease renewal means you’re signing a brand-new lease agreement with your landlord. This agreement is typically for another fixed term. This new lease may be identical to your old one, or it may come with changes such as rent increases, adjustments to lease terms like pet policies, or new clauses. It’s vital you thoroughly review any proposed changes before signing a lease renewal.
When Your Lease Expires: Exploring Your Options
So, your lease is up. Now what? You have three primary options: renew your existing lease, transition to a month-to-month arrangement, or move out entirely.
1. Lease Renewal
Renewing your lease offers stability, allowing you to continue enjoying your current apartment and avoid the hassle of moving. Many landlords see the value in retaining good tenants and prefer this option, as it provides them with consistent rental income. However, landlords will often use the opportunity of a lease renewal to raise rent.
Generally, your landlord should provide you with a lease renewal letter at least 90 days before your original lease expires. This gives you enough time to consider all of your options and doesn’t put pressure on you to make a hasty decision. However, some landlords may be willing to negotiate the lease terms of a renewal even if they haven’t provided the standard 90-day notice, particularly if you have a good history as a tenant. This may be especially true in markets with higher vacancy rates where landlords are eager to keep good tenants.
It’s best to proactively inquire about a potential renewal well in advance if you haven’t heard from your landlord. If you don’t receive paperwork, it’s perfectly acceptable (and smart.) to inquire about renewing 90 days before the expiry date.
Curious about what’s considered normal for rent increases during a renewal? That’s where having context around national averages and your local rental market comes in handy. Business intelligence firm CoreLogic reported that recently, single-family rents across the US hit a 16.5-year high. Their July 2021 report indicated an 8.5% year-over-year increase, signaling a very competitive rental market.
But rental trends vary. According to Apartment Guide, specific cities saw rent declines and according to Ross Quade, rental prices in Austin, Texas have came down almost 15% in 2024.
For a more micro view, tools like our free Austin rental analysis and Zillow Rent Zestimate provide insights to determine fair rent prices for comparable properties in your local area. If, after your research, you believe your landlord’s proposed increase is excessive, you have every right to respectfully negotiate.
It’s important to approach the rent increase conversation with a respectful and collaborative attitude. Highlighting your positive attributes as a tenant—such as paying rent on time and keeping the property in excellent condition—strengthens your position during these discussions. You could even consider offering a longer lease term in exchange for a smaller rent increase.
2. Month-to-Month Lease Agreement
What happens if you like your place but are unsure about committing to another full year? Or maybe your landlord isn’t quite ready to offer a renewal. That’s where transitioning to a month-to-month agreement can be beneficial. This offers greater flexibility for both parties, though it does come with some considerations.
Firstly, when a lease ends and no new lease or notice has been provided by either you or the landlord within 30 days, it’s likely your tenancy will automatically shift to a month-to-month term, sometimes referred to as an “at-will” tenancy. Essentially, this implies an agreement to continue the lease on a month-to-month basis under most of the same terms and conditions as the original lease but you should know most professionally managed communities that are managed by RPM, Greystar and MillCreek will almost certainly require to renew your lease for another 12 months minimum or provide notice to vacate.
It can be a nice option for renters who value flexibility that want a month to month lease but you should know that landlords can usually raise the rent or even ask you to vacate with shorter notice.
For specifics on state regulations regarding these notices, it’s best to consult a legal professional familiar with your Texas landlord-tenant laws or utilize helpful resources like the interactive map of landlord-tenant laws in Texas from the American Apartment Owners Association (AAOA) for. Month-to-month living may sound tempting if you’re considering a move soon, wanting to buy a house or find a roommate and lower your monthly rental costs by splitting your rent/utilities.
If you are offered a month-to-month agreement, make sure you fully understand the terms and are prepared for the possibility of a rent increase or having to move out with relatively short notice.
3. Moving Out: Ending the Tenancy
Maybe you’ve outgrown your apartment or are simply ready for a change of scenery. In those situations, moving out upon the expiration of your lease makes perfect sense. However, this decision also requires careful planning and understanding your responsibilities as a tenant – especially if the community requires a 60 day notice to vacate or they require that it must be given by the end of the calendar month.
Regardless of the reason – career changes, downsizing, relocation – you have to formally notify your landlord in writing that you’ll be vacating the property when your current lease term ends – don’t think for a second that you can call up the leasing agent or property manager and give them a verbal notice! Usually, landlords require written notice to vacate between 30 to 60 days before your lease ends and that’s gonna be true for just about any property that’s professionally managed in Austin. 30-day notices are the norm, though it’s smart to review the lease agreement to confirm their expectations and any local or state regulations that might impact that timeframe – your lease will spell out exactly what the terms are so stop guessing and start reading! Sending your notice early can minimize the risk of miscommunication and demonstrates consideration for your landlord while ensuring they leave you a positive review should you need a rental verification at your new place.
Making an Informed Decision When a Lease Is Up
Figuring out your next steps when a lease is nearing its end can seem complicated, but it doesn’t have to be. You can make informed decisions as a renter by understanding your lease agreement and legal rights. As we’ve covered, a lot hinges on individual situations and local rental landscapes.
The decision of what to do when a lease is up boils down to considering several key factors. Once your lease ends, there is no guarantee that your landlord will renew the lease agreement or keep the same rental rate. You will want to consider all factors, including potential moving costs if you decide to move, before making your final decision.
- Reflecting on your rental experience: Have you felt comfortable in the apartment and with your landlord? Have any issues or recurring problems cropped up that dampen your enthusiasm for renewing? Does anything need repairs or are you unsatisifed with the shower water pressure or AC troubles in the middle of an Austin heat wave?
- Factoring in finances: How comfortable are you with a possible rent increase, or are you looking for more affordability? Can your budget accommodate potentially higher rental rates on a month-to-month lease?
- Long-term goals: Do your current and future real estate goals align with staying put or moving? Consider career aspirations, personal relationships, desired location, and other factors that may influence this significant decision. Finding an affordable place to live in a growing city requires working with an expert if you’d like to find a cheaper rental rate or move-in concession with up to 10 weeks of free rent.
If You Don’t Want to Renew – Talk to an Apartment Locator!
When a lease is up can you renew it OR do you even want to? Hopefully you’ll have the time to consider your options and find the right answer!Understanding how leases work can greatly contribute to a positive rental experience overall, especially if you want to check out the competition and see if there are any other amazing rental concessions. Whether opting for a renewal with potential negotiations, embracing a month-to-month agreement, or embarking on a fresh start elsewhere, thorough preparation is vital to ensuring you can either negotiation your renewal or find a new place in time. Always review your lease agreement carefully even if it’s with an apartment community or individual landlord. Stay informed of local laws impacting landlords and renters in your specific area so you understand your rights. Understanding these essentials allows for a smooth and positive rental experience as you make your choice and embark on this new chapter of adulting.
