Lease Renewal and Rent Increases

When your fixed-term lease ends, you may go month-to-month, sign a new fixed term, or move out. The lease and local law often say how renewal works—and how much the landlord can raise rent. If you don't read carefully, you might assume rent stays the same or that you get long notice—but the contract or law may say otherwise. Here's what to check about lease renewal and rent increases.

What happens at the end of the term

• Fixed term ends. You may have a right to stay on (e.g. as a periodic tenant month-to-month) unless the landlord gives notice to leave—or you may need to sign a new lease. Local law varies. Check whether the lease says anything (e.g. "tenant may remain on a month-to-month basis") and what the law says.
• Renewal. If you want to stay, do you need to sign a new lease? Does the landlord have to offer the same terms? In many places the landlord can offer a new lease with different terms (e.g. higher rent)—and if you don't agree, they can give notice to leave. So renewal is often a chance for the landlord to raise rent—within legal limits.

Rent increases

• During the term. The lease should say whether rent can increase during the fixed term. If it's silent or says rent is fixed, you typically don't owe more until the term ends (unless the law allows mid-term increases in your jurisdiction). If the lease says the landlord can raise rent during the term, check local law—some places restrict or ban that.
• At renewal. When the term ends, the landlord can usually offer a new lease at a higher rent—subject to local rules. Many places limit how much rent can go up (e.g. a percentage per year), or require a certain notice period (e.g. 60 or 90 days). The lease may say nothing—so you need to know the law.
• Notice. How much notice must the landlord give for a rent increase? For notice to leave? Get it in writing so you have time to decide.

What to look for

• Renewal terms. Does the lease say what happens at the end of the term—month-to-month, new lease, or notice to leave? Clarity helps.
• Rent increase limits. Does the lease say how much rent can increase at renewal? If not, check local law—you may have more protection than the lease suggests.
• Notice periods. How much notice for a rent increase? For the landlord to end the tenancy? Longer notice is better for you.

BeforeYouSign can highlight renewal and rent-increase language in your lease so you know what to expect when the term ends—before you sign.