It’s about that time, renters – time to decide what you’re going to do after your rental agreement is up. Though the time is near, this change in your life won’t come without warning. Other than keeping tabs on the date when your lease ends, your property manager or landlord will notify you anywhere from 30 to 60 days in advance with a reminder that your lease is going to expire soon. With that reminder comes a monthly renewal rate, if you were to decide to renew your lease, along with month-to-month pricing if you prefer to go the short-term route.
What is a lease renewal?
When your lease is up, you will have the chance to opt for a lease renewal, which means that at the end of your lease term, both you and your property manager agree to renew the lease. The property manager will create a new lease with similar terms to that of the original, and both you and the property manager (and any of your roommates who are also choosing to renew) will need to sign this new contract.
What is the process for a lease renewal?
After you’ve been notified by your property manager – 30 to 60 days in advance – of your impending end date, it will be time for you to make a choice. If you choose to renew your lease, then you will need to provide your property manager with written notice of this decision. An email or letter will do the trick – ask your leasing office which form of notice they prefer. But just because your lease is renewing doesn’t mean that your rent is staying the same.
Typically, an apartment community raises their market rent anywhere between two and five percent on a yearly basis (if you’re going by a standard 12-month lease) with an average raise of 3.18% per year according to CoStar Group. Because of this yearly statistic, you can expect your rent to raise just slightly when it comes time for your lease renewal. However, if you were given a rental concession on your previous lease, your rent may be going up more than you anticipated with your new lease.
What is a rental concession?
A rental concession is a reduction in the cost of rent by the property manager in hopes of finding a tenant quicker. This tactic is often used when the rental market isn’t as promising as expected. For instance, if your monthly rent is $1,200, but your lease states a concession of $50, then you will only be paying $1,150 in rent. Though concession fees are great for renters, they may not stick around for your lease renewal. Be aware of this when you’re considering renewing your lease.
If you decide to renew, you will be accepting your new rental rate, and your property manager will send you a new lease agreement to review and sign. You will not be required to pay any further fees when you renew your lease, such as an application fee, security deposit, or administration fee. Those were taken care of when you originally moved into the apartment – phew!
Month-to-Month Lease Agreement
Perhaps you’re feeling less than committed to another 12-month (or other long-term) lease agreement. Whether you need another month or so to decide if you want to renew or you need some extra time to look for your next apartment, a month-to-month lease agreement may be your best bet.
What are the terms of renting month-to-month?
After you’ve received your notice from your property manager about your upcoming end-of-lease date, you’ll be given a second option aside from renewing your long-term lease. Your property manager should list out the month-to-month pricing on your renewal offer if you were to choose this option.
A month-to-month lease agreement is not like a fixed term agreement (a long-term lease). Your rent can change every 30 days with this type of short-term lease. Though it’s nice for renters who aren’t ready to commit to another long-term lease, you need to consider that your rent may not be stable month after month. And when you’re ready to end this month-to-month agreement (or sign on for another long-term lease), you will need to provide your property manager with a written notice to vacate (or a written renewal notice) anywhere between 30 and 60 days ahead of time – check your lease to determine your timeline!
Moving into a New Apartment
If you’ve opted out of both a lease renewal and a month-to-month rental agreement, then your final option is to move out of your current apartment and find a new rental. Whether your rent is increasing too much for you to renew, month-to-month leasing is out of your budget, or you simply want to look for a new place, we have you covered when you’re ready to find your new apartment! But before you begin your search, make sure that you provide your property manager or landlord with a written notice to vacate letter at least 30 or 60 days prior to the end of your lease, depending on the terms of your lease.
When you move out of your apartment after your lease is up, you can expect to possibly receive money back from your security deposit and your pet deposit (if you paid one), depending if the apartment is left free of damage. Anything that you paid titled with “fee” before you moved in is nonrefundable, so don’t anticipate receiving that money after you move out. But how exactly do you get your security deposit (or any deposit) back after you move out of your apartment?
Getting Your Security Deposit Back
Getting your security deposit back from your property manager or landlord isn’t always a guaranteed deal. The amount (if any) that you receive after you’ve moved out of the apartment depends on the state your unit was left in. To secure yourself the return of your security deposit, you’ll want to:
- Thoroughly clean your apartment, from the floor to the ceiling fans
- Make any and all repairs to the damage you caused, such as holes in the wall
- Be present during your move-out inspection
- Return your keys, including your mail key, keycard, gate fob, etc.
Your best chance of getting your security deposit back is leaving your apartment in tip-top shape, back to the condition you found it in. As long as you or your pet did not damage the property and you paid rent in full on time, every time, you should receive your security deposit back after you move out of your apartment. You can expect this payment by check through the mail to your new address (as long as you provide your property manager with new address prior to moving out) about 30 to 60 days after you’ve moved out, depending on your local laws.
After Your Lease Ends
When it comes down to it, you have three logical options of what to do when your lease is up. You can: renew your lease for another term, agree to a month-to-month lease, or move out of your apartment (with proper notice) and find a new rental. Do your research regarding the cost of rent in the area, decide what your budget is, determine potential moving costs, and ultimately figure out which option is best for your living situation. Best of luck, renters!
