Strategies for Lease Renewal
After the initial year rental agreement is expired, then you can either:
- Choose to renew then for another set term
- Go month to month
- Or part ways
For the reasons listed above, month-to-month is generally thought to be the best option. Do not simply auto-renew the next term for the same as the initial term. To the attorney comment above, this is a major driver of confusion and attorney visits.
After the initial term, you both know more about life circumstances, how the home is working out, and your relationship as lessor/lessee. If it makes sense to renew for an extended period of time and its mutually beneficial, there is little reason not to. The more popular route is to go month-to-month, with 2 important clauses: a set # of days to exit the contract, and a set # of days to adjust the rental amount. This way, the flexibility exists to cover both parties’ interests.
And of course, if the relationship has not been a great fit in the initial term, you kept your options open and can part ways amicably.
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