Lease Agreement Renewal
Lease renewals depend in large part on the language of the original lease. Many lease agreements will spell out how a renewal will be handled. If a lease and state law or local law are silent on this issue, then the actions of the landlord or both the tenant and landlord will determine what happens next.
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Fixed Term to Month-to-Month
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A common renewal clause changes a fixed term lease to a month-to-month tenancy at the end of the fixed term. For example, at the end of a one-year lease, the tenancy continues from month to month, with all other lease provisions in force.
Automatic Renewal
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Leases sometimes contain a clause indicating the lease will automatically renew for the same term as the original lease at its expiration. A one-year lease automatically renews as another one-year lease, etc. In some cases it will require the landlord to provide a reminder notice to the tenant 30-days in advance of the renewal and an opportunity for the tenant to opt out of the lease. Some states and local jurisdictions prohibit an automatic renewal clause. Therefore it is invalid even if it appears in the lease. In California, the automatic renewal clause is only valid if it is written in large, bold-face print.
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Other Language
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Some leases may refer to a lease extension that will be or may be offered to the tenant prior to the expiration of the initial lease. Others may place a burden on the landlord to notify the tenant 30 days or 60 days prior to the expiration of the lease, and at that time either offer a new lease or a lease extension or inform the tenant the lease will not be renewed. Unless prohibited by state or local law, the lease may have any number of provisions regarding lease renewals.
No Renewal Language
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Unless otherwise regulated by state or local law, if the lease is silent about renewal, then the lease expires at the end of its term. If the tenant does not move, he may be evicted. On the other hand, if he gives the next month's rent to the landlord and the landlord accepts the rent, the lease continues on a month-to-month basis. For a month-to-month lease, renewal language is not necessary because there is no term--it continues until either the landlord or tenant give provide notice.
The Effect of Rent Control
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Almost all rent control laws prohibit evictions without cause. In these instances, the tenancy would not expire, regardless of the language in the lease. Landlords in these jurisdictions usually accommodate the eviction prohibition in renewal language that moves a fixed-term lease to a month-to-month tenancy at the end of the term. This keeps all but the rent price and termination of tenancy provisions in force.
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References
Resources
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