Lease renewal letter template

What is a lease renewal letter?

A lease renewal letter or notice is a document that landlords and property managers use when they want to extend their tenant’s lease. The notice informs the tenant that their lease will expire, and that the landlord would like to extend it for the rental property.

Tenants may also write a letter to their landlord requesting that the lease be prolonged. Generally, in Canada, residential leases are renewed automatically. There may be an exception if one or both parties have a valid reason to terminate the lease upon expiry (for example: the tenant is moving, or the landlord is selling the property).

What should I include in a lease renewal letter?

A lease renewal letter should include the following information:

• Landlord/Property manager name and address
• Tenant name and address
• Date of letter
• Rental term
• Monthly rent amount
• Rent increase/decrease (if necessary)
• Response deadline, including a move-out date if the tenant declines
• Landlord/Property manager’s signature

When does the notice need to be sent out?

As mentioned above, leases are generally renewed automatically if there are no changes to the lease terms.

If, however, the landlord or property manager wishes to make changes to the lease, they must give the tenant advance notice. How early the notice must be varies from province to province. Please check your provincial rental authority for more information.

What are some changes the landlord can make?

The landlord or property manager can make changes to the lease, as long as the changes comply with provincial laws and regulations. Some of these changes could be an increase in the rent, a change in payment method, or a change to a lease term.

Considerations for landlords

Before sending a lease renewal letter, landlords should consider the following questions:

• Is the tenant worth keeping? If the tenancy has been trouble-free on all fronts, it may be worth holding onto the tenant. Finding a new tenant takes time and money — though if the current tenant has been problematic, it may be worth the effort.
• How long is the lease being renewed for? The renewal term doesn’t have to mirror the original lease term, although this is what most landlords prefer. Either way, both parties should agree on the term before finalizing the new agreement.
• Are any terms being changed? Any adjustments to the lease terms should be decided before the letter goes out, not after. This keeps the offer clear and redcues the likelihood of drawn-out negotiations.
• What is the response deadline? Setting a clear deadline gives the tenant a reasonable window to decide, while ensuring the landlord has enough time to find new tenats if the current tenant chooses not to renew.

Sample lease renewal letter

Commonly asked questions

What is the difference between a lease renewal and a lease extension?

A lease renewal creates a new agreement, which may include updated terms (like a rent increase). A lease extension, on the other hand, prolongs the existing lease under the same terms, without drafting a new agreement. In practice, which one applies to your situation will depend on your province’s tenancy laws and what both parties have agreed to.

What happens after I make a lease renewal offer?

The tenant will review the offer and either accept, reject, or propose different terms. If they accept, make sure the updated agreement is signed and that each party keeps a copy. In other cases, the tenant may want to negotiate the new terms before committing.

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