A lease renewal handled well strengthens a good tenancy. Handled badly — too late, or with a surprise rent increase — it can turn a reliable tenant into a vacancy.
Here's how to do it right.
When to start the process
Start the conversation 2–3 months before the lease ends. Not 2 weeks before. Not when the tenant asks you.
Why 3 months? Because:
- Your tenant needs time to decide whether they're staying or leaving
- If they're leaving, you need time to find a replacement
- If you're increasing rent, the tenant needs time to accept, negotiate, or find somewhere else
- Getting a new agreement signed takes time even when everyone agrees
Set a reminder now for every lease end date in your portfolio. Leasily shows lease end dates on each tenant's record — check them quarterly.
Decide your position before the conversation
Before you contact the tenant, know what you want:
- Renew on the same terms — straightforward, just confirm the new end date
- Increase the rent — how much, and why
- Change the lease structure — shorter or longer term, different notice period
- Not renew — if so, check your country's legal notice requirements
Going into the conversation without a clear position invites confusion. The tenant will ask what you're thinking. Have an answer.
How to approach a rent increase
Rent increases are a normal part of being a landlord. Tenants generally accept them if they're handled professionally and with reasonable notice.
What makes a rent increase easier to accept:
- Advance notice (not the week before renewal)
- A brief explanation (inflation, market rates, rising costs)
- A reasonable amount (5–10% is typically accepted; 25% in one step is likely to lose the tenant)
What makes it harder:
- Springing it with no notice
- Giving no reason
- Making it feel personal
You don't need to apologise for increasing rent. You do need to be fair and professional about it.
Check the legal limits
Some EU countries regulate how much and how often landlords can increase rent. In Germany, rent increases are regulated under the Mietpreisbremse (rent brake). In the Netherlands, annual increases are capped. In Lithuania and most Eastern European markets, there's more flexibility — but check your local rules.
Get it in writing
However you handle the renewal, get it in writing before the old lease expires. This doesn't have to be a whole new document. A signed addendum confirming:
- The new rent amount (if changed)
- The new lease end date
- Any other changed terms
...is sufficient in most countries.
Keep a copy. Store it alongside the original lease.
What happens if the lease expires without renewal?
In most EU jurisdictions, a tenancy doesn't automatically end when the lease expires. If neither party gives notice, it typically rolls over — either on the same terms, or into a statutory periodic tenancy.
This sounds convenient but creates problems:
- The tenancy becomes harder to end (notice periods may change)
- The rent amount may be unclear
- You lose the clarity of a signed agreement
Don't let leases expire without a deliberate decision one way or the other.
When a good tenant is leaving
If a long-term tenant is leaving — even amicably — there are a few things to sort before their last day:
- Agree a checkout date and do a property inspection together
- Reconcile the deposit against any damage or outstanding rent
- Get meter readings on the day
- Formally end the tenancy in writing
With Leasily, you can log the tenancy end date, mark all payments as settled, and archive the tenant's record. The property status updates automatically.
Planning for the next tenancy
If the tenant is leaving, you have 2–3 months to find a replacement. Use it:
- List the property at the updated market rate — check local listings to calibrate
- Have your screening process ready (application form, income verification, reference checks)
- Have the new lease agreement ready to sign quickly once you've chosen a tenant
Vacancy is your biggest cost. The best way to minimise it is to be organised enough that the gap between tenancies is days, not months.