Lease Renewal Option

A lease renewal option is a clause in a rental agreement that gives the tenant the right to extend the lease for an additional period after it expires, usually under specified conditions. It allows the tenant to continue occupying the property without negotiating a new lease, often by providing notice within a set timeframe. This option benefits tenants seeking stability and landlords by reducing vacancy risk. Typically, terms like renewal duration and rent adjustments are outlined in the original lease agreement, making renewal straightforward if both parties agree to proceed.