I want to renew my lease on my rental property. Can this be done?
Virtually all of our tenants renew their leases with us, past their first-year as our tenants. It is very common and it is very easy for you to do. Your current lease, with us, details the specifics on how your lease can be renewed with us, regarding your particular rental property.
In many cases, your lease will automatically renew unless you give a certain amount of written notice. Your lease will detail the exact duration that it will be renewed. Most often the lease will renew for a full term, or for one year.
Often our leases will state that when the lease renews there will be a slight increase in rent. This amount will likely be a percentage of the previous year’s rent. This percentage is intentionally set to be nominal, so as not to deter ideal tenants away from the property.
The small amount brings the landlord closer to the yearly increased value of the property. The amount intends to offset possible yearly inflation, tax increases, increased maintenance costs, and also market appreciation.
But it is intentionally kept small and at a fraction, to minimally affect our current tenant. In other words, we typically set the increase, well under what we feel the rental property would likely get in rent, when back on the market and the increase of being a rental property landlord.
I don’t want to renew my lease. What do I need to do?
We will miss you – but tenants leave eventually. Some tenants move out of Philadelphia, some outgrow their current rental property, and some downsize as they leave roommates, and choose to live alone.
Whatever the reason, not renewing a lease is also easy and it is also well defined in your lease. Almost always, you will need to notify us in writing that you choose not to renew, before a certain amount of time, before your current lease is to end. This amount of time is often a few months (again, refer to your lease). This allows the property owner to prepare. For the details on security deposits, refer to those articles here in the Rental Rent FAQ.
In some cases, we can not renew a lease.
In some cases, a landlord will choose not to renew a tenant’s lease. Perhaps the rental property might be approaching sale, or the property owner might wish to renovate the property and replace it back on the Philadelphia rental market for its new improved price. In some cases, the landlord might not feel the tenant is the right fit for the property.
Your lease will also define the notice that we must provide you if we intend not to renew your lease. We would inform you in advance (as stated in your lease).
It is helpful to mention that you are protected in that a lease is a contract, that binds the landlord and the tenant. A property can be sold, but the new owner typically can not remove the tenant unless it has been agreed upon in the lease. If that is the case, the notice to the tenant would also be defined there.
