A lease renewal letter is a written offer from a landlord or property manager inviting a resident to sign a new lease before the current one ends. It states the new term, the new rent, the deadline to respond and how to accept. Most operators send it 60 to 90 days before lease end, followed by reminders, so residents have time to decide and the property has time to plan.
The letter matters more than it looks. RealPage reported that just over 54% of market-rate residents with an expiring lease renewed in the year ending October 2024, according to its retention analysis. Every resident in the other half becomes a turn, with lost rent, repairs and marketing attached. The renewal letter is where that decision starts.
When should you send a lease renewal letter?
Send it early enough that the resident decides before they start touring other properties, and early enough to meet any notice rules in your lease or local law. The timeline below is a starting point for a 12-month lease.
What Should A Lease Renewal Letter Include?
- The resident's name, unit address and the date of the letter.
- The current lease end date.
- The renewal offer: lease term options and the monthly rent for each.
- Any change to the lease terms, such as fees, utilities or pet policy.
- The deadline to respond and how to accept, ideally with an online signing link.
- Any renewal reward and the date it must be earned by.
- What happens if the resident does not respond, including month-to-month terms if your lease allows them.
- A contact name, phone number and email for questions.
Lease Renewal Letter Templates
Copy and adapt the four templates below. Replace everything in brackets and have your legal team confirm the wording for your state before you use it.
Template 1: Standard Lase Renewal Letter
[Date]
Dear [Resident name],
Your lease at [Property name], [Unit address], ends on [Lease end date]. We would love for you to stay, and we are pleased to offer you a renewal.
Renewal options:
12-month lease: $[Rent] a month
[Other term]-month lease: $[Rent] a month
To renew, sign your new lease at [Signing link] by [Response deadline]. If you have questions about your options, contact [Name] at [Phone] or [Email].
Thank you for being part of our community.
[Name]
[Title], [Property name]
Template 2: Lease Renewal Letter With A Rent Lncrease
[Date]
Dear [Resident name],
Your lease at [Property name], [Unit address], ends on [Lease end date], and we would like to offer you a renewal.
Your new monthly rent will be $[New rent], an increase of $[Amount] from your current rent of $[Current rent], starting on [Effective date]. This reflects [brief, honest reason, such as higher operating costs or market rents in the area].
Over the past year we have [one or two specific improvements, such as a renovated fitness center or faster maintenance response]. We want to keep making [Property name] a great place to live.
Please sign your renewal at [Signing link] by [Response deadline]. If you would like to talk through other lease terms, contact [Name] at [Phone] or [Email].
[Name]
[Title], [Property name]
Template 3: Lease Renewal Letter With An Early-Signing Reward
[Date]
Dear [Resident name],
Your lease at [Property name], [Unit address], ends on [Lease end date]. We would love for you to stay, and we are offering a thank-you to residents who renew early.
Renewal options:
12-month lease: $[Rent] a month
[Other term]-month lease: $[Rent] a month
Sign your renewal by [Early deadline] and we will send you a $[Value] [gift card brand or "gift card of your choice"] as soon as your lease is signed.
Sign at [Signing link]. Questions? Contact [Name] at [Phone] or [Email].
[Name]
[Title], [Property name]
This reward is available to every resident whose lease ends on [Lease end date range] and who signs by [Early deadline].
Template 4: Lease Renewal Reminder
[Date]
Dear [Resident name],
This is a reminder that your lease at [Property name], [Unit address], ends on [Lease end date], and we have not yet received your renewal decision.
Your renewal offer of $[Rent] a month for a [Term]-month lease is open until [Response deadline]. If we do not hear from you by then, we will [state what happens under your lease, such as treating the unit as available for a new resident or moving the lease to month-to-month at $[Rent]].
Sign at [Signing link], or contact [Name] at [Phone] or [Email] if you have questions or would like to discuss other options.
[Name]
[Title], [Property name]
How Do You Write A Renewal Letter With A Rent Increase?
Most renewals now carry an increase. Mid-America Apartment Communities (MAA) reported renewal lease increases averaging 5.2% in the second quarter of 2026, and said that nearly 60% of its fourth-quarter 2026 renewal decisions had been made by the end of August with increases averaging about 5.5%, in its September 2026 capital markets update. Residents who signed with a concession can face a larger jump. In its August 2026 update, MAA estimated that the average competitor concession of 1.25 months free means a rent increase of about 10% when the concession expires.
Four practices make an increase easier to accept:
- Show the dollar amount next to the percentage, so the resident sees the real monthly change.
- Give one honest reason in a sentence, without a long justification.
- List what the resident gets for staying, such as service improvements and the cost of moving they avoid.
- Offer a choice of terms, since a longer lease at a smaller increase may suit both sides.
Notice rules apply. In California, for example, the California Attorney General states that an increase of 10% or less needs 30 days' notice and an increase of more than 10% needs 90 days' notice, and statewide rules cap most increases at 5% plus the change in the cost of living, or 10%, whichever is lower, over 12 months. Local rent control can be stricter. Confirm the rules in every market where you send letters.
Should You Offer A Renewal Incentive?
A renewal incentive gives the resident a reason to decide early, and it gives the property an early read on how many units it will need to lease. The choice is in the type of incentive.
A gift card for renewing early keeps the rent roll intact and costs far less than a turn. Gift cards are a familiar incentive: the Incentive Research Foundation reports that they make up at least 43% of all incentives in North America in its Industry Outlook for 2025. Paylode has seen action-based gift cards move resident behavior at scale. FirstKey Homes offered a gift card through Paylode Boost to the first 60 residents who enrolled in autopay and recorded a 25% increase in autopay enrollments in the first campaign period, as documented in the FirstKey Homes case study.
Offer the same reward to every resident in the same renewal window, put the rule in writing, and send the reward the moment the lease is signed, so residents connect the reward with renewing.
See how Paylode Boost sends a gift card the moment a renewal is signed.
What Should You Do If A Resident Does Not Respond?
- Follow up by the channel the resident actually uses, such as text, the resident portal or a phone call, after the first letter.
- Ask directly whether anything would change their decision, and log the answer.
- Send the final reminder with the exact response deadline and what happens after it.
- At 30 days with no response, start pre-leasing the unit so a resident who leaves late does not leave a long vacancy behind. Paylode's guide to moving partnerships and resident onboarding covers how to make the next move-in and move-out smoother.
Lease Renewal Letter Mistakes To Avoid
- Sending the letter too late for the resident to decide before touring elsewhere.
- Quoting a percentage increase without the dollar amount.
- Leaving out the deadline or how to accept.
- Offering a reward to some residents and not others in the same renewal window.
- Missing a notice period required by state or local law.
- Sending the letter once and never following up.
Frequently Asked Questions
How far in advance should a landlord send a lease renewal letter?
Most professional operators send it 60 to 90 days before lease end. Check your lease and local law, since some markets require longer notice when the renewal includes a rent increase.
Is a lease renewal letter legally binding?
The letter is an offer. The new lease or lease extension the resident signs is what binds both sides. Have your legal team review the wording for each state.
What happens if a tenant does not respond to a renewal letter?
It depends on the lease. Some leases convert to month-to-month, and others end on the stated date. Your final reminder should say exactly which applies.
Can you offer a gift card for renewing a lease?
Yes. Apply the same rule to every resident in the same renewal window, state it in the letter, and deliver the reward after the lease is signed.
Make Every Renewal Letter Count
The renewal letter is the cheapest retention tool a property has, and a well-timed reward makes it work harder. Book a demo with Paylode to add early-renewal rewards and resident perks to your renewal process. More for multifamily, single-family rental and student housing operators is on Paylode's residential real estate page.
