While a lease renewal and lease extension allow a tenant to stay in a rental unit beyond the lease’s expiration date, each option gets handled differently. Learn the best times to use an extension or a renewal.
Will Your Lease Include an Automatic Renewal?
According to The People’s Law Library of Maryland, a property owner can include a separate provision with the lease for automatic renewal. The renewal must be for a period of more than 30 days, and the tenant must sign the provision to show acknowledgment.
Once signed, the tenant may stay in the unit under the same lease conditions for the new term. If the tenant provides notice that they will vacate, the automatic renewal becomes invalid.
What Is a Lease Extension?
As the lease’s expiration date draws near, the tenant and property owner or property management company can agree to extend the lease for a short period. An extension can cover a few weeks or several months.
A tenant can use the extra time to find new housing. The property owner can use this time to find a new tenant. All of the lease conditions will still apply throughout the extension.
What Is a Lease Renewal?
Renewing the lease for a new term is another option for the landlord and tenant. This option lets them renew or restart a 12-month lease for another 12 months. Any rental agreement terms included in the original lease, such as a pet policy or smoking ban, get carried over for the new lease term.
A lease renewal is advantageous to both parties. The landlord won’t have to look for a new tenant. The tenant will save themselves the costs and time involved in a move.
Let Us Handle Your Tenant Leases for You
Reliable Property Management, Inc. provides a range of services to assist property owners in Baltimore. We stay updated on landlord/tenant laws to ensure we can provide services you can trust. To learn more, call us at (443) 869-3799 or contact us online.