Lease renewal guide: when, how, and how much to raise the rent

Lease renewal is the single most expensive decision a landlord makes each year. Lose a good tenant and you'll typically spend 1–2 months' rent on vacancy, turnover, and re-leasing. Keep a marginal one and you'll spend the year cleaning up problems. Renewals are worth doing intentionally.

1. Calendar the renewal window

Most state laws and most leases require landlords to give 30–90 days' written notice of non-renewal or change in terms. If the lease ends June 30 and your state requires 60 days, you need to deliver any renewal offer or non-renewal notice by May 1. Miss the window and the lease usually rolls over to month-to-month automatically — losing you both the term commitment and your leverage on a rent change.

2. Decide whether you want to renew

Before you send anything, answer honestly: did this tenant pay on time? Treat the unit well? Communicate respectfully? Follow lease rules (pets, occupancy, smoking)? A "yes" to all of these is worth a lot — probably more than a small market-rate increase.

3. Set the new rent

• Pull comparable active listings within a half-mile, same beds/baths.
• Check what truly comparable units have actually rented for recently.
• Factor in turnover cost: 1 month vacancy + cleaning + paint + listing fees often equals 8–12% of annual rent.
• Where allowed, most operators land on 3–8% annual increases for in-place tenants — meaningfully below the cost of turnover.
• Check rent-control or rent-stabilization rules in your city — many cap annual increases (CA AB-1482, NY, Oregon, several MA cities, etc.).

4. Send a written renewal offer

The renewal offer should include:

• New term length and start/end dates.
• New monthly rent.
• Any other changes (pet policy, utilities, parking).
• A response deadline (usually 14–21 days).
• What happens if they decline (notice to vacate by a specific date).

5. If the tenant negotiates

Good tenants will sometimes push back on the increase. Decide your floor in advance. A common compromise: hold the increase smaller in exchange for a longer term (e.g. 18 or 24 months), which locks in stability and saves you a renewal cycle.

6. If you're not renewing

Send a clear non-renewal notice within the legal window. State the last day of the lease, return-of-deposit process, move-out inspection time, and key return instructions. In most states a landlord does not need to provide a reason for non-renewal — but reasons that touch a protected class (familial status, source of income, disability, etc.) are illegal regardless of timing.

7. After renewal: get it in writing

A signed renewal addendum (or new lease) is the proof of the new term and rent. A handshake "we agreed to extend" is not enforceable in most courts.

Don't let renewals slip

The most common renewal mistake is missing the notice window. PLINTH calendars every lease's renewal notice deadline and alerts you before it lapses, so the renewal conversation happens on your timeline — not the lease's.

General education, not legal advice. Renewal notice periods, allowed increases, and just-cause requirements vary by state and city — confirm before you act.