Before You Renew: What to Consider When Your Lease is Up

When you rent a home or apartment, you will inevitably have to make the tough decision about whether or not to move. Most leases are for six months to a year making the decision about where to live a recurring process. While it certainly can be easier to stay put, there are some very legitimate reasons to make a move.

If it's time to decide if you're going to renew your lease, consider the following as part of the decision-making process.

Questions to ask before renewing your lease

Have the terms of your lease changed?

Your new lease may not be the same as your old one so make sure that you read the fine print carefully. Watch for new fees and changes to any rules. Are these changes fair or are they dealbreakers for you?

You should also consider this as an opportunity to negotiate any changes you’d like to see made.

Is the price affordable?

Chances are good that the rent will go up from one lease to the next. If your new lease has a rent increase, can you afford it? Does it seem fair and in line with past increases? Can you get a better or comparable apartment for the same or less money?

And regardless of whether or not the price increases, it's a good idea to review your budget and make sure whatever payment you're agreeing to is affordable for you. If you've been struggling this may be the perfect time to find a cheaper apartment.

Are you happy with the features of your apartment?

Spending money on something you don’t like—no matter how cheap it is—is never a good deal. The same goes for your home. One of the benefits of leasing is that you have the opportunity to make a change if you aren’t satisfied—with no questions asked.

Do you like the size and layout of the apartment? Are you satisfied with the appliances? Do you like (or even use) the amenities in your apartment complex?

Over time, your needs will change. Maybe you need more space or more services. Maybe you would like more parking or additional security features. If your existing landlord cannot meet those needs, it may be time to move on.

Does the location still work for you?

Consider your larger landscape. Is your leased home close to things that are important to you such as your work, your friends, and your family? Is the surrounding neighborhood a good fit for you? If your home isn’t in the right location, it may not be the right home for you.

There are things you might have thought about yourself and your neighborhood when you first moved in, but now that you've actually lived there for a time you probably have a better idea of what is and isn't working for you.

While there are some valid reasons to make a change, it isn’t smart to move for no good reason. Before you start packing, you should consider the following downsides to moving.

Can you afford to move?

If you're not satisfied for one reason or another, you may think that moving is the right call, but that's not without it's own complications. The biggest? It's not cheap to move.

The initial cost of leasing a home or apartment can be steep. You will need to make a deposit and could possibly incur costs associated with moving your services (phone, electrical, gas). Of course, there can also be costs associated with moving your stuff.

If your existing apartment is in less than satisfactory condition, you will likely have to pay for repairs. Also, keep in mind that you may need or want to purchase furniture and décor items for your new home.

Importantly, always keep your lease renewal date in mind and plan accordingly. In some areas, such as those near college campuses, landlords have early renewal deadlines—sometimes several months before the end of the lease. Also, you should research whether or not your lease can automatically renew. Some leases renew automatically if you don’t give them notice by a certain date that you don’t want to renew. 

Worried about a potential eviction? You have rights. MMI offers free eviction counseling to help you resolve disputes and address past due rental payments.