Lease Renewal vs. Lease Extension

Your lease is about to end, and your landlord has reached out about renewing or extending your lease. Hopefully, they have given you plenty of time to make your decision, but either way, what’s the difference between a lease renewal and a lease extension? 

The main difference between a lease renewal and a lease extension is the amount of time and the terms the new contract includes. For example, a lease renewal is typically the same length as your previous lease and comes with updated terms, like a rent increase. A lease extension simply extends the term of your current contract, usually with no changes to your previous lease agreement, other than the end date. This article covers the ins and outs of lease renewals and extensions to help you decide which option is right for you.

Can You Extend a Lease on an Apartment?  

Yes, you can extend a lease on an apartment. While a lease renewal may be more common, a lease extension can be helpful for renters who want a specific end date for their agreement or need more flexibility. To ask for a lease extension, approach your landlord 60 to 90 days before your lease is set to end and specify the terms, like your proposed end date and the length of the extension you need.

If your apartment community has set rules for lease renewals and extensions, be sure to follow the terms laid out in your lease.

What to Know About Lease Extensions

Lease extensions can be great for both parties. For you, the tenant, a lease extension gives you a little extra time to find a new rental after the extension is up without having signed a new long-term lease. For the landlord, an extension can help avoid a vacancy and retain a tenant, as well as rental income, for a few more months. 

How is a lease extension different from a renewal? 

A lease extension is a signed agreement that extends the terms of your current lease. A lease renewal enters you into a new agreement with potentially new terms. While a lease extension is not a month-to-month lease, lease extensions can last anywhere from several weeks to a couple of months. A lease renewal is typically the same length as your previous lease. The main difference between the two leasing options is the amount of time they last and the terms included.

Why would a landlord extend a lease rather than renew? 

There are many situations in which a landlord may offer a lease extension rather than a renewal. The landlord may have plans to sell or renovate the property and can’t offer a full lease term, but also doesn’t want to risk a vacancy. A lease extension may also be a landlord’s way of letting you stay in your unit longer without raising the rent or signing a new agreement. 

Will my rent increase with a lease extension? 

Since a lease extension simply extends the term of a lease and usually keeps the existing lease terms in place, the rent will most likely stay the same during the extension. Unless you live in a rent-controlled building or there is direct language in your lease that forbids a rent increase outside of a renewal, your landlord is within their rights to raise rent if they give you the proper notice as required by local laws. 

Can I Extend My Lease for Just a Few Months?

Lease extensions are typically negotiated on a case-by-case basis depending on the length of time the renter wants to stay in the unit and how long the landlord is willing to extend the lease end date. The length of a lease extension depends on the amount of time the tenant and landlord agree on, but extensions can range anywhere from a few weeks to several months depending on the situation.

If you’re looking for more flexibility, consider a month-to-month lease. This leasing option provides less long-term commitment than entering into a new 12-month lease. Before you sign a lease, do your research to decide which lease length is right for you.

What to Know About Lease Renewals

A lease renewal is when your landlord asks you to sign a new lease to remain in your rental for another lease term after your current lease ends. In most cases, not much will change during a lease renewal, but there are a few things to watch out for if you’re renewing your lease. 

What is a lease renewal?

A lease renewal means your landlord is letting you stay in your unit but needs you to sign a new lease agreement for another term that’s usually the same length as your initial lease. Your landlord will typically offer a lease renewal 30 to 60 days before your lease ends to give you and property management enough time to decide and plan accordingly. A lease renewal usually comes with lease changes, like a monthly rent increase or updated terms.

If you’re happy in your rental and want to stay for another lease term but your landlord hasn’t offered a renewal, ask your landlord if this option is available to discuss.

Can I negotiate my lease renewal terms? 

This is one of the most important questions renters have when it comes time to renew. Before you renew your lease is the best time to talk to your landlord about potential changes in terms, including rent and the length of the lease. If you’ve been a reliable tenant who pays rent on time and follows lease rules, you may have more negotiating power. It’s in your landlord’s best interest to minimize tenant turnover, so don’t be afraid to negotiate for new terms. 

Should I renew my lease? 

The question of whether you should renew your lease or not depends on your personal circumstances and happiness with your apartment community. If you have plans to move to a new city or start a family and the unit you’re in now is too small, you may not decide to renew your lease. If you’ve had issues with maintenance or landlord communication, you might want to look for a new apartment. 

Deciding whether to renew a lease can be stressful; this is when a lease extension can be helpful.

What to know about lease renewals 

A lease renewal is a popular time for landlords to increase the monthly rent. This is also an opportunity to negotiate your lease agreement. Your landlord should send a lease renewal letter 60 to 90 days before your current lease ends. Make sure to let your landlord know what you decide as soon as possible. 

Deciding to Extend or Renew?

Whether you decide to extend or renew your lease, both options come with pros and cons. Renewing your lease means you sign a new contract with a new end date, but this agreement will likely come with a rent increase. A lease extension can buy you some time and alleviate the stress of a move and apartment search, but you won’t have the security of a long-term lease.

Make sure to communicate with your landlord during this time and consider your personal circumstances to decide which leasing option is right for you. Happy renting! 

Find Your Preferred Lease Term on Apartments.com

Whether you’re looking for a one-month or six-month lease, Apartments.com makes it easy to find a lease term that works for you. On Apartments.com, you can search for available apartments by lease term.

To search this way, navigate to the Apartments.com homepage, select the city you want to search in, select “All Filters,” scroll to the “Short-Term” section, and choose your desired lease term. Finding a place that’s right for you is easy on Apartments.com. Start your search today!