The world of apartment rental is massive, growing, and sometimes downright scary, which is why many people find themselves unsure of whether or not they will be renewing their lease when it is up. For this reason, many people opt for a self-renewing lease, which can be very much a double-edged sword. Using how to use this tool to your advantage can help you to gain some security, save some money, and help you develop a good relationship with the landlord. However, a self-renewing lease can be a massive headache if you don't know how to use it for your own benefit. Here are some pros and cons to be considered when deciding to sign off on a self-renewing lease.
- If you're not sure whether you'll be re-upping your lease or not, a self-renewing lease can eliminate the tedious paperwork associated with writing and signing a new lease under the same terms for the same property.
- If you do plan on staying at the same apartment or house, a self-renewing lease will give you leverage in order to keep from having your rent rise if you have to sign the same lease next year. In other words, you won't be competing with other renters at the end of your lease.
- A self-renewing lease means that you can set the amount that you are "in" on your home, meaning if you want to terminate early, the maximum amount the landlord can ask for is the rent due over the term of the self-renewing lease.
- A self-renewing lease gives both the landlord and the tenant an incentive to keep the lease intact, so it could be a way to forge a good relationship with your landlord, potentially translating to a lower rent or more lenience in payment if you make a good impression.
- If you don't stay up to date on your paperwork, your lease could renew when you don't want it to.
- You have to give your landlord ample notice (you'll agree to the time frame in the text of the lease) that you won't be renewing your lease, or else he or she can ask for money for a new lease term that you won't be using.
A self-renewing lease can be a blessing or a curse, depending on how you use it. Thankfully, the former is typically the case, especially if you remain diligent and stay on top of your paperwork during the life of the lease. For more information, contact a company like Kimball Real Estate.Share