With the housing market remaining highly competitive, more renters are choosing to renew their apartment lease due to convenience and reliability. A report from RentCafe revealed that 61.5% of renters have renewed their lease in 2024, with over 93% of apartments occupied across the U.S.
But is renewing your lease always the best option? The short answer: it depends!
Doud Apartment Homes’ leasing experts weigh in on what renters look for when considering a lease renewal, including what to expect, green flags to keep in mind, and alternative options if renewing doesn’t make sense.
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What to Consider When Renewing Your Apartment Lease
- Review Your Apartment Lease Renewal Letter for Changes
- Evaluate Your Current Living Situation
- Plan for Your Future
- Go Over Your Finances
- Ask About Apartment Upgrades
- Explore Other Living Options
- Talk to Your Landlord
1. Review Your Apartment Lease Renewal Letter for Changes
A lease renewal is an updated contract between you (the renter) and the landlord that allows you to continue living on the property. The new lease is typically the same as your current lease except for:
- An adjusted rent rate
- An updated lease duration
Of course, diligent tenants should take the time to read through the new lease to check for additional updated terms, such as:
- Pet policies
- Late rent policies
- Maintenance policies
- Renter’s insurance requirements
- Early termination clauses
- Subletting clauses
And other special conditions. If you disagree with a term, talk to your landlord for clarification and see if there’s room to negotiate.
When Are Lease Renewals Sent Out?
Landlords send lease renewal letters to tenants between 60 and 90 days before the current lease ends, though some areas notify residents earlier to give tenants time to consider their options. The renter is responsible for signing the lease or telling the landlord (in writing!) if they are not renewing within 30 days of the end of the current lease.
This system is a win-win for both parties since a lease renewal keeps a good situation going, and the 30-day buffer ensures the renter and landlord have time to make new living arrangements.
Make sure you adhere to the response deadlines to avoid any legal ramifications!
If you don’t hear from your landlord within the time frame, email or visit the leasing office to confirm. You should also check your renter portal (if available) to see any pending documents.
2. Evaluate Your Current Living Situation
Reflect on your overall satisfaction with your apartment and its amenities. Has your experience been positive, or are there areas of concern? Consider any changes in your personal circumstances that might impact your decision, such as a new job, changes in family size, acquiring a pet, or shifts in your roommate situation. Additionally, consider your neighborhood and surroundings have evolved—for better, worse, or the same.
After reviewing your updated apartment lease, it’s important to reflect on your overall experience living in your space. Asking the right questions can help you determine if the apartment still fits within your lifestyle or if a change of pace is in order.
Make a list of the pros and cons of living in your space:
- Is my living situation stable and sustainable?
- Do I enjoy living in the area?
- Do I have a good relationship with my neighbors and landlord?
- What are the perks of being in this space?
- Is it easy to live how I want to live?
- Have I outgrown the space?
You may also find that your living situation now is different from when you signed the initial lease. Maybe you have a new job that is further away or recently purchased a pet that requires more space. Or, you’ve started a new relationship and are looking to move in together!
Whatever the situation, understanding your current needs is key to determining if your apartment continues to fulfill them.
3. Plan For Your Future
On that note, your future goals can be major factors when considering an apartment lease renewal. Let’s say you recently got a new job that requires you to relocate, but the job won’t go into effect until the middle of your new lease. Renewing for a full year only to break the lease may not be the best option compared to going month-to-month or negotiating for a shorter lease term.
Another scenario: Let’s say your roommate wants to move out halfway through the new lease term, but you want to stay. You may need to find a new roommate to sublet the space for the remaining term, consider asking for a shorter lease, or plan on downsizing. Regardless of your choice, talk to your landlord to understand your options.
4. Go Over Your Finances
Renter rates generally increase by 5% to 15% each year, depending on renewals vs new tenants. In a 2023 survey from Avail, about 56% of participating landlords reported they prefer to raise rent by 0% to 5% for apartment lease renewals. Landlords who don’t cite rentals being at or above market value as the main reason.
So what does this mean for the renter?
When renewing your apartment lease, compare your current rent to the new rate to calculate the increase. This can give you an idea of what to expect at your next lease renewal.
Renters may also prefer to stay in their apartments to keep their financial and living situations stable. This allows them to work toward future goals by reliably growing their finances.
5. Ask About Apartment Upgrades
One of the best perks of living in a larger apartment complex is that property managers often schedule upgrades and renovations to keep the units attractive and in demand. That could be installing new cabinets, upgrading the appliances, and adding new light fixtures.
Older complexes with newly constructed buildings may have a large style difference between their standard builds and luxury floor plans. Properties often have a fully refurbished model unit to view, allowing you to experience the changes first-hand. If you like what you see, talk to your landlord about upgrade options before signing the lease renewal.
6. Explore Other Living Options
Even if you’re inclined to stay, exploring other apartment options can help you understand what’s in the market and how your space compares. Think of it as part of your yearly reflection! Our apartment tips guide is a great resource for finding your dream apartment, but you may also realize that you love your property!
Living options to consider when you want to stay:
- Move to a Larger or Smaller Unit Within Your Building: If you love the property but find your space isn’t serving you, try exploring available floorplans. Maybe you want a southern-facing window for your plants, or you prefer a larger, two-bedroom unit to spread out. Whatever it is, your landlord can share options!
- Get a Roommate to Upsize While Reducing Costs: Roommates come with many perks, the main benefit being the ability to upsize into a larger apartment while lowering the average cost per person. Lease renewals are also the ideal time to include a roommate’s name formally on the lease.
- Ask About Longer Leasing Terms: Some properties have specials to help decrease tenant turnover. Talk to your landlord to see if signing a longer lease can help keep your rent lower.
For renters who need to leave due to changing circumstances (such as transferring for a job, purchasing a home, moving out of state, etc.), there are leasing options that can give you time to sort out your situation before committing to your move.
- Go Month to Month: Going month-to-month is the most flexible option. It’s ideal for renters who aren’t sure what their next few months will look like and want to avoid the consequences of breaking a lease. In exchange for flexibility, month-to-month leases often come with higher rates.
- Consider a Lease Extension: A lease extension is a lease amendment that changes the end date of your current lease, leaving all other terms (including rent rate) the same. Renters usually ask for lease extensions as a short-term solution before moving out. This gives the renter more time to plan and the landlord more time to find a new tenant.
- Ask for a Shorter Lease Duration: Renters who can’t stay for a full 12-month lease but have a timeframe when they need to move out may consider asking for a shorter lease duration. Unlike a lease extension, a shorter lease is a new lease with new terms. Read the lease carefully to ensure it meets your needs.
7. Talk to Your Landlord
This is a no-brainer, but talk to your landlord or property manager to explore your options! After all, how will you know what you can negotiate unless you build a relationship with your landlord and communicate honestly? The apartment lease renewal process is designed to help both parties reevaluate if the terms are working for them while ensuring a level of stability.
Renewing Your Apartment Lease
Ultimately, the decision to renew your lease should be based on a careful assessment of your current situation and future needs! Consider your satisfaction with the apartment, financial implications, and the pros and cons of staying versus moving.
Approach the lease renewal process with confidence, armed with the knowledge and preparation to make the best choice for your living situation.
