If you love the place you rent, Orlando lease renewals are fairly straightforward. When your lease agreement nears the end of its term, your property manager will send notification on what action steps to stay there longer. But if this is your first rental (or your first time renting through The Realty Medics), we’re here to help you understand the process.
Nearing Lease Agreement Expiration
Most tenants will receive the option to renew their lease near 90 days before the end of their current lease agreement. Tenants are under no obligation to respond to the renewal offer, however, if a lease renewal is signed with less than 30 days remaining on the current lease there will be a late renewal penalty as the unit turn process has already begun. In situations where the owners elect not to renew the tenants they are legally obligated to notify the tenants of non-renewal with 40-60 days notice, depending on the property’s municipality.
Your Orlando property management company will send you written notification of renewal/nonrenewal options.
The notification will include instructions on the Orlando lease renewal process and any new terms (such as rent rate increases based on the market).
At The Realty Medics, tenants in good standing have the option to renew their lease and stay, to move out, or even to replace tenants (with approval) without paying an additional fee.
Lease Renewal Terms
Most lease agreements are for 12 months.
When current tenants in good standing with The Realty Medics decide to renew their lease, they may have the option to sign a lease renewal for up to 36 months (with owner approval). Some options are also available for less than 12 months, depending on circumstances and owner approval.
Leases with longer terms allow tenants to lock in their rent rate for three years. During times of inflation or in areas with a rising demand in rental homes, this could save someone hundreds of dollars and waste time looking for a new place if they love where they live.
However, remember if you commit to a longer lease, an early termination penalty will still apply. So if you’re considering a longer-term lease, it’s best to make sure you won’t need to move before your lease expires.
Rental Rates
That said, as you near your tenant lease renewal period, similar to other expenses, there is a high probability of your rent increasing.
The property management company will conduct a rental market analysis to determine current rent rates. As one lease agreement ends, the new lease agreement will include increases based on market prices.
The standard increase is around 3 to 5 percent annually, although during 2021-2023 Central Florida experienced some extreme rental rate increases with some areas seeing as high as a $200/month increase. If the market price is too far away from your current rate, The Realty Medics will have a conversation with the owner to determine what they want to do. We like to say, “Don’t price out a good tenant,” but ultimately, the owners decide whether to increase rent, and if so, by how much.
Time to Move On
Sometimes, when the lease agreement is close to expiring, an owner may decide not to offer the option of renewing.
Most often, if the tenants have not been paying their rent consistently or have a due balance, they will most probably be asked to move out. Renewal of the lease will not be an option.
Other times, the decision to not renew a tenant’s lease could have nothing to do with the renters themselves. Home sales, relocations, major renovations, or using the rental property for other purposes can take a rental home off line.
If you have questions about your lease renewal notification, whether through The Realty Medics or someone else, give us a call! You can reach us at 321-947-7653 or learn more about renting with The Realty Medics on our Getting Started page.
