When your tenants want to stay in your rental property, you will typically have to extend the lease. A lease extension agreement, or lease renewal, will allow you and your tenant(s) to extend the agreement beyond its original end date.

In most cases, the other terms and conditions of the lease will remain the same, unless you also amend them. At this time, you could opt to increase the amount of the monthly rent, too. (Although oftentimes, landlords may leave the amount alone in exchange for the tenant locking in for a longer period of time – particularly because a lease extension with a current tenant can keep you from having a vacancy and, in turn, no cash flow from the property).

There are several steps involved in extending a residential property lease. These include:

  • Reviewing the original lease
  • Communicating with the tenant regarding any additional changes
  • Determining the new end date for the lease
  • Drafting a lease addendum
  • Signing the lease addendum (either in person or through an electronic signature)

The lease addendum should include all of the pertinent information, including the:

  • Date
  • Landlord’s name
  • Tenant’s name
  • Property address
  • Lease beginning and end dates

Before moving forward, it is recommended that you have an attorney review all of the documents. This can help to ensure that you haven’t left anything out.

If you would rather not spend a lot of time on your real estate investments – yet still wish to receive a passive income stream – working with an experienced, local property management team could be a good solution.

In addition to taking care of the lease details, the property manager can also advertise for tenants, screen applicants, collect the monthly rent, respond to emergencies, and ensure that all of the regular property maintenance is in check.

So, if you own residential rental property in Orlando and/or the Central Florida locale, give us a call and we’ll provide you with additional details.