What does 'lease renewal' entail?

Lease renewal pertains to the process of extending the duration of an existing lease agreement with the tenant. This typically involves maintaining the essential terms of the lease while allowing both the landlord and tenant to continue their arrangement beyond the original lease term. It serves to provide stability for both parties, as the tenant can remain in their residence and the landlord retains occupancy without the need to find new tenants.

During this process, the existing lease terms, such as rent and responsibilities, can be reviewed and potentially modified to reflect current market conditions or any changes in circumstances. However, the core aspect of lease renewal is inherently tied to the extension of the lease rather than introducing new terms for a new tenant or completely terminating the existing contract.

In this context, a lease renewal is not about terminating a lease contract or negotiating terms for new tenants, and it may not necessarily involve an increase in rent. Instead, it provides an opportunity for continuity and stability for both landlords and tenants.