Can You Renew a Lease in Florida?
Are you an accidental landlord dealing with your first renewal? Are you curious how to handle your tenants lease renewal?
Statistics reveal that tenants are renewing leases at record levels.
- In the second quarter of 2020, 57.4% of renters renewed their leases.
- In the third quarter of 2021, this increased to 57.6%.
- By the first quarter of 2022, the renewal rate rose again to 58.3%.
We expect even higher rates to come out of 2024.
As a property owner, retaining responsible tenants is crucial. Tenant retention is key, and it's important to handle lease renewals correctly to avoid any issues. Have you considered the process of renewing a lease?
Here are some important details to consider:
Considerations For Renewing a Rental Agreement
Finding new tenants takes time, so renewing with your current tenant may be easier. However, only continue a lease with a tenant who takes care of your property, pays on time, and respects their neighbors.
Keeping a mediocre tenant who damages the property and pays rent late will cause more stress than finding a new tenant.
Should You Increase Rent?
The next consideration is whether to increase the rent. This decision to raise the rent when renewing a lease agreement could impact whether a tenant will stay.
You might need to offset rental income for annual expenses, but this could mean losing your tenant. Determine if the rental increase is worth the potential vacancy.
If you decide to increase the monthly rent, you must provide a notice of rent increase. Notify your tenant of the increase as soon as possible.
This gives them the information needed to decide whether to stay, opening the door for rent negotiation.
When to Offer the Rental Lease Renewal
You should offer your tenant a new lease 90 days before the current lease expires. You can do this via email, a lease renewal letter, or in person. Having a strong lease renewal process is important.
Your goal is to get a reply from the tenant within 30 days. This gives you at least 60 days to find a new tenant if needed.
How to Make the Offer
Electronic delivery, including emails, is the most efficient form of communication. Your message must include all the details, such as the current lease’s expiration date and the new terms.
Additionally, include the offered rental price. If the tenant agrees, you will need to draft a new agreement.
Month-to-Month Renewal
Some tenants prefer to stay for a shorter period than an annual lease term. They may request a month-to-month, meaning the lease continues on a monthly basis.
In these long term leases, either the landlord or the tenant can end the lease with sufficient notice. Consider the pros and cons of a month-to-month agreement.
The renewal lease must specify the required notice period, typically 30 days.
Even a month-to-month lease requires a signed agreement from both parties. You can also consider extending the lease agreement. Make sure you sign your lease and every party gets a copy.
What to Know About Renewing a Lease
It's easier and cheaper to keep a good tenant than to find a new one. To retain tenants, aim to keep them satisfied.
This involves managing the process professionally while protecting your rights as a landlord. Retaining tenants in their leases is key to reducing vacancies. Professional property managers and landlords use attorney-prepared leases.
Lease Renewals in Central Florida
In Florida, when a lease ends, it is assumed to be over unless it is renewed. If the lease agreement doesn't say exactly when it ends, the tenant must tell the landlord if they want to end or continue the lease. Most property managers charge a lease renewal fee, but the longer a tenant stays the more money you make.
If the landlord doesn't want to rent to the same tenant after the lease ends, they can charge the tenant double rent if they stay past the lease end date.
The amount of notice needed to end a lease depends on the lease length:
- For an annual lease, the landlord or tenant must give 60 days' notice before the lease ends.
- For a quarterly lease, 30 days' notice is required.
- For a month-to-month lease, at least 15 days' notice is needed (except in Miami, where it is 30 days).
- For a week-to-week lease, 7 days' notice is needed.
Hire a Professional Property Manager
Allegiant Management Group's experts assist Central Florida landlords with all lease matters and tenant satisfaction. They offer a full range of property management services and can tailor a program to meet your goals. They were named one of the best property management companies in Orlando.
Choose property managers with the experience and resources to help you succeed as a real estate investor. Contact Allegiant Management Group today to learn more about reducing vacancies and lease negotiations. They also offer a-la-carte services.
Frequently Asked Questions (FAQs): Renewing A Lease in Florida
Can You Renew a Lease in Florida?
Yes, you can renew a lease in Florida if both the landlord and tenant agree. Lease renewals can be automatic (if stated in the contract) or require a new agreement. Florida law does not mandate renewal, so either party can negotiate terms or choose not to renew.
What are the benefits of renewing a lease?
- Cost Savings: Avoid higher rent from new leases when you only pay lease renewal fees.
- Stability: Stay in a familiar home or office.
- Convenience: Skip moving costs and hassles.
- Negotiation Power: Request better terms or perks.
- Continued Relationships: Maintain landlord and neighbor connections.
When and How to Offer a Lease Renewal?
Offer a lease renewal 60–90 days before the lease ends. Provide written notice outlining new terms, rent adjustments, and response deadlines. Communicate via email or letter and allow tenants time to review. If they accept, draft a formal lease renewal agreement for signatures.
How far in advance should a lease renewal be offered in Florida?
In Florida, lease renewal offers should be made 30 to 90 days before the lease ends. The exact timeframe depends on the lease terms and local regulations. Providing early notice allows tenants time to decide and helps landlords avoid vacancies.
Can a Florida landlord refuse to renew a lease?
Yes, a Florida landlord can refuse to renew a lease unless discrimination or retaliation is involved. No state law requires lease renewal, so landlords may choose not to renew for any legal reason. Proper notice, typically 15 to 60 days, is required based on lease terms.
Can a tenant stay after the lease expires?
Yes, a tenant can stay after a lease expires, but their status changes. If the landlord allows it, the lease typically converts to a month-to-month tenancy under the same terms. If unauthorized, the tenant may face eviction. Notice periods vary by state and lease terms.
Can a landlord increase rent when renewing a lease in Florida?
Yes, a landlord can increase rent when renewing a lease in Florida unless restricted by local laws or the existing lease terms. Florida has no statewide rent control, so landlords can raise rent with proper notice, typically 15 to 60 days before renewal, depending on lease terms.
What happens if a tenant doesn’t respond to a lease renewal offer?
If a tenant doesn’t respond to a lease renewal offer, the landlord can assume they plan to vacate or continue on a month-to-month basis if allowed. Landlords may issue a non-renewal notice or start re-renting the unit. Notice requirements depend on state laws and lease terms.
Can a lease automatically renew in Florida?
Yes, a lease can automatically renew in Florida if it includes an auto-renewal clause. Without this clause, tenants staying after lease expiration typically transition to a month-to-month tenancy under the same terms. Landlords or tenants must provide proper notice to end or modify the lease.
What are the disadvantages of renewing a lease?
- Limited Flexibility: Locked into another lease term.
- Rent Increases: Landlords may raise rent.
- Missed Opportunities: No chance to explore better housing options.
- Unchanged Terms: Cannot renegotiate unfavorable conditions.
- Property Issues Persist: Existing maintenance or neighbor issues remain.
Can a landlord change lease terms upon renewal?
Yes, a landlord can change lease terms upon renewal, including rent, fees, and policies. Changes must be communicated before renewal, typically 30–60 days in advance. Tenants can accept, negotiate, or decline the new terms. If declined, they may need to vacate when the lease expires.
Disclaimer: This information is for general guidance only and not legal advice. Florida landlord-tenant laws may change, so consult a qualified attorney before making legal decisions.
Blog Updated: 02/23/2025
