A lease renewal is a decision about money that usually gets made as a conversation about people, and it goes better the other way round. The number that matters is what a turnover would actually cost you, and most landlords have never worked it out for their own unit. This page is the arithmetic, then the timing, then what to write down.
Work out what a turnover costs you
Vacant weeks at the current rent, the cleaning and repairs a change of tenant triggers rather than the ones you would do anyway, advertising, the hours spent showing and screening, and any letting fee. For most single units that total is a meaningful multiple of a month's rent. Against it, a renewal at a rent slightly under the market figure is frequently the better deal, and you cannot see that without the number.
Start earlier than feels necessary
Ninety days before expiry for most residential tenancies. It gives the tenant time to decide without panic, gives you time to market if the answer is no, and keeps the decision out of the last fortnight where both sides negotiate badly. If your state requires notice of a rent change, that period runs inside this one rather than instead of it.
Say what is changing, in writing, once
The new term, the new rent and the date it takes effect, and anything else that has moved. A renewal is either a new agreement or an addendum to the existing one, and either is fine as long as it is a document both sides sign. What is not fine is a renewal agreed in conversation and evidenced only by the rent changing, which is a dispute waiting for a reason.
Read the tenancy before you price it
Payment history, work orders raised and how they went, any warnings given. A tenant who has paid on time for two years and asked for nothing is worth more than the market rent differential, and one who has not is worth less than the vacancy. That reading is only available if the record exists, which is the case for keeping one that has nothing to do with tax.
Questions people ask about lease renewal
How much notice is required to change the rent at renewal?
It is set by the state and commonly the same as the notice to end a tenancy, with longer periods for larger increases in some places. Check before you set the date.
Does a renewal need a whole new lease?
No. An addendum stating the new term and rent, signed by the same parties, is enough and keeps the history readable.
What if the tenant does not respond?
Then you are approaching expiry without an agreement, and what happens next is your state's default: often a month to month tenancy. Knowing which default applies is what stops that being a surprise.