How Do I Handle a Lease Renewal?

A lease renewal begins with a decision, not a letter: do you want this tenant to stay, and on what terms? Review the tenancy before you commit. Did rent arrive on time, was the unit cared for, did maintenance requests come in reasonably, and did the relationship stay professional? A tenant who is a small headache monthly is often cheaper than turnover, but a pattern of late rent or conflict is a signal to plan for a new tenant instead.

Renewal timing matters. Pennsylvania does not require a specific advance warning for renewals, but common practice is to reach out 60 to 90 days before the lease ends. That window gives a good tenant time to weigh your offer, and gives you time to market the unit if they decline. Waiting until the last weeks forces a rushed decision and risks a holdover or a surprise vacancy.

Set your renewal terms before you contact the tenant: the rent, the new term length, and any changes to rules or deposits. Decide whether the renewal keeps the same lease with updated dates or becomes a month-to-month tenancy, and make that choice explicit in the offer.

The renewal rent should reflect the current market, your costs, and the value of a proven tenant. Check what comparable units in the neighborhood now rent for, and check your own expenses, such as taxes, insurance, and repair costs. Raising the rent to market keeps the property performing, but a large jump can push a reliable tenant to move, and replacement costs, vacancy, and turnover can easily exceed the extra rent.

There is no active rent control in Pennsylvania, so the lease and the market govern the number. For a month-to-month renewal, or after a fixed term ends, an increase with proper written notice, commonly a full rental period, is generally enforceable. For a mid-term change, the tenant must agree in writing.

If you keep the rent flat, say why in the renewal offer: it rewards a good tenant and often is worth the cost of avoiding turnover. Whatever the number, present it in writing, with the total monthly payment including any fees, so there are no surprises in the new term.

Put the renewal offer in writing, even if you have already discussed it by phone or in person. State the new term dates, the rent, any changed terms, and the deadline for the tenant's response, typically two to four weeks. Send it early enough that you still have time to market the unit if the tenant declines, and note what happens if they do not respond by the deadline.

When the tenant agrees, sign a renewal document, whether that is a new lease with updated dates or a renewal addendum referencing the original agreement. Have every tenant on the lease sign. If their situation changed, such as a new roommate, handle that with a lease change before the renewal is final.

If the tenant declines, confirm their move-out date in writing and start your turnover plan: notice to end the tenancy if needed, scheduling move-out, and marketing the unit. If they neither sign nor move out, you may face a holdover tenancy, which requires written notice and possibly an eviction, so address it promptly.

Once signed, file the renewal with the original lease and update your records. Note the new term dates, the rent, and any changed terms in your files, and confirm the security deposit remains on record at the correct amount. Pennsylvania caps an initial security deposit at two months' rent, and if the renewed tenancy keeps the same deposit, the same holding and interest rules continue to apply.

If anything changed, such as a new pet, a parking space, or a utilities arrangement, attach a signed addendum so the new term has no gaps. Re-send the current house rules if they changed, and acknowledge any outstanding maintenance so the new term starts clean.

A well-documented renewal protects you at move-out: the signed renewal is the evidence of what the tenant agreed to for this period, and the condition of the unit from the original move-in still anchors the security deposit comparison. Keep the paper trail complete from day one.