How to Handle Lease Renewals and Negotiations

By PropsManager Team | Dec 17, 2025

How to Handle Lease Renewals and Negotiations

1. Start Early

Contact the tenant 90 days before the lease expires. "Your lease is ending soon. We'd love for you to stay."

2. The Offer

Present the new terms clearly.

• "Renew for 12 months at $1,500."
• "Go month-to-month at $1,600."

3. Negotiation

If they ask for a lower increase, listen.

• If they are a perfect tenant (never late, no complaints), it might be worth keeping the rent slightly lower to avoid vacancy.
• Counter-offer: "I can't do $1,450, but I can do $1,475 if you sign a 15-month lease."

4. The "No"

If they decide to leave, get it in writing immediately and start marketing the unit.

Conclusion

Treat renewals as a business transaction, but value the relationship.