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Back to: Landlord Success: Proven Strategies & Practical Advice for Stress – Free Property Management

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LEASE RENEWAL

At the end of the lease term, and if the tenants are staying you should have a new lease signed. In review there are Fixed Term Tenancy (which typically is for a term of 1 year and the relationship ends on the date on the lease) and Periodic Tenancy (which goes month to month forever until one party requests a change).

FIXED TERM

  • At the end of the term the lease, the lease is complete, and the tenancy ends. If a new lease is not written and signed by both parties, the tenant stays, the landlord accepts payment for the next months rent and the lease converts automatically to a Periodic (month to month) lease.
  • Review each property about 100 days (don’t forget to put a note in your calendar for the 100-day mark) in advance of the lease ending and determine:
    • If you want to keep the tenant. 
    • If you are going to raise the rent.
  • If you are keeping the tenant and want to raise the rent, send a rental increase notice at least 90 days before the end of the term (see Raising the Rent). Make sure you have them acknowledge they are staying and are good with the new lease rate.
  • If you are not going to renew a fixed term lease, do not show up on the last day of the lease and inquire as to what they are still doing here?
  • Give the tenant minimum 45 days notice that you are not renewing the lease. This will give them time to find a new property to move to. 
  • You do not legally need to give any reason to not renew the lease. I usually say “Sorry, I have decided not to renew your lease”.  If you keep it on good terms, it will be easier to get cooperation to show the unit to re-rent it.  
  • This is your one time a year to get rid of that tenant easily that has been driving you nuts for numerous reasons. This is the advantage of fixed term leases. Even if you think you might lose a month’s rent, it is better to go forward with a good tenant than keep a bad one.
  • If you are keeping the tenant, write the new lease in advance (with the new or old rental rate) meet them and have it signed at least 15 days in advance.  Inspect the property, have a chat, thank the tenant for being a great tenant.
  • If you are changing the rental rate and you have already given them 90 days notice (they have agreed), don’t forget to get the new auto deposit bank form signed when you get the lease signed, drop it off at the bank so you start collecting the new rental amount at the beginning of the next month.
  • If they are moving out don’t forget to go to the bank and cancel the auto withdrawal at least 15 days in advance, so you don’t take their money by mistake.

PERIODIC TERM

Periodic Leases don’t have a term associated with them. This lease technically will run forever until terminated by either party in accordance with the Residential Tenancy Act.

  • If it has been over 365 days and you would like to raise the rent send a rental increase notice at least 90 days before the end of the term (see Raising the rent). Make sure you have them acknowledge they are staying and are good with the new lease rate.
  • If you are changing the rental rate, you have already given them 90 days notice (they have agreed), don’t forget to get the new auto deposit bank form signed when you get the lease signed, drop it off at the bank so you start collecting the new rental amount at the beginning of the next month.
  • If they are moving out don’t forget to go to the bank and cancel the auto withdrawal at least 15 days in advance, so you don’t take their money by mistake.
  • If you do not want to continue the Periodic lease (See Ending a Periodic Lease section).