A Landlord’s Guide to Lease Extensions and Renewals

Whether you're managing a single property, or you have a larger portfolio, knowing how to handle lease extensions and renewals is one of the simplest ways to protect your income, avoid legal trouble, and keep good tenants in your rental property.

Yet many landlords overlook this area until the last minute, leading to avoidable stress, gaps in income, or unintended rolling tenancies. Our guide breaks it all down in plain English, so if you're a landlord in Tooting, our team at Your Home Managed is here to help you stay ahead.

What’s the Difference Between a Lease Extension and a Renewal?

Before you decide how to move forward with your tenant, it’s important to understand how lease extensions and renewals differ. It’s easy to mix them up, but there are key legal and practical differences between the two, and choosing the right one can make a big difference to how smoothly things go.

• A lease extension keeps the current agreement in place and simply updates the end date. The original terms and clauses continue.
• A lease renewal ends the existing agreement and replaces it with a new one, often updating the rent, responsibilities, or fixed term.

Understanding the difference helps you choose the best option for your property strategy, especially if you’re planning a rent review or thinking about selling soon.

When Should You Start the Process?

Timing is everything when it comes to renewals and extensions. Leave it too late and you risk falling into a periodic tenancy (rolling monthly) by default. Worse still, your tenant might feel rushed or uncertain about their living situation. Ideally, start the conversation three to four months before the tenancy end date. This gives both sides time to consider the options, negotiate any changes, and get the paperwork sorted without pressure.

This forward planning helps avoid:

• Unexpected periodic tenancies that limit your control
• Unnecessary voids or tenant turnover
• Legal issues due to short notice or unserved documents

A clear timeline shows tenants that you’re professional and helps build a positive landlord-tenant relationship.

Key Legal Considerations for Landlords

Lettings laws shift regularly, and this year is no exception. As a landlord, you have specific legal responsibilities when handling renewals and extensions. Staying compliant protects your income and avoids disputes down the line. The main areas to watch include tenancy type, notice periods, and deposit protection.

• Most tenancies are still classed as Assured Shorthold Tenancies (ASTs). Any changes need to stick within the rules for ASTs.
• You must give the correct notice if you plan to end the tenancy - usually two months under a Section 21 notice.
• The tenant’s deposit must stay protected in a government-backed scheme, even through renewals or extensions.
• Rent increases or updated terms should always be agreed in writing.

These legal details can be easy to miss if you're managing things solo, which is why many landlords choose to work with a trusted letting agent in Tooting like us.

Why Should Landlords Consider Lease Extensions or Renewals?

If your current tenant is reliable, pays rent on time, and looks after the property, then renewing or extending their lease is often the best option. It saves you the time and cost of re-letting, gives your tenant more security, and helps you plan your income more accurately.

Here’s why many landlords opt to extend or renew a tenancy rather than start fresh:

• You reduce the risk of empty periods between tenants
• You secure your income for the months ahead
• You create a better working relationship with tenants, which often leads to fewer issues
• You get a natural chance to review terms, increase rent, or clarify responsibilities

It’s a win-win when managed properly.

Negotiating a Lease Renewal: Tips for Landlords

Not all negotiations need to be awkward. When handled professionally, tenancy renewal discussions can help set expectations, retain a great tenant, and even boost your income. It’s your chance to reflect on how the tenancy has gone and whether any changes are needed.

Here are some tips for making the process straightforward:

• Check current rents for similar rental properties in Tooting so you’re confident in your pricing.
• Factor in tenant history because a respectful, prompt-paying tenant is often worth holding onto, even if you could get slightly more rent elsewhere.
• Offer options, such as a six-month or twelve-month renewal, to suit different needs.
• Be transparent about any rent increases or changes to terms, and give tenants time to consider

Good communication here can make renewals quicker and easier, without misunderstandings.

The Role of Letting Agents in Lease Management

Staying on top of lease expiries, tenant communication, and legal paperwork is time-consuming - especially if you own more than one property. That’s where a property management company in Tooting like Your Home Managed can step in. We handle the admin, keep everything compliant, and ensure nothing slips through the cracks.

Here’s how we help:

• Preparing and issuing new tenancy agreements or extensions.
• Serving Section 21 or Section 13 notices correctly.
• Reviewing rent levels in line with local market trends.
• Managing signatures, deposit updates, and storing records.

If you’d rather spend your time on other priorities, outsourcing your property management is a good move.

Common Mistakes to Avoid

Even experienced landlords can make errors when it comes to lease renewals and extensions. These slip-ups can lead to disputes, legal problems, or even lost income. Here’s what to watch out for:

• Not putting renewed terms in writing.
• Forgetting to update the deposit protection scheme if the tenancy technically ends.
• Assuming the tenant agrees to new terms without getting confirmation.
• Letting fixed-term tenancies roll into periodic ones by default.

These mistakes are easily avoided with a little planning and the right advice.

Lease renewals and extensions don’t have to be complicated, but they do need your attention. Stay proactive, stay organised, and don’t be afraid to get help when you need it. Contact our team at Your Home Managed today on 0208 125 7780 or email info@yourhomemanaged.com. As a trusted letting agent and property management company in Tooting, we’re here to help you get the most from your investment.

In the meantime, we’ve answered some of your common questions about lease extensions and renewals.

FAQs

Can I extend a lease without creating a new contract?
Yes but always put it in writing. Even simple date extensions should be documented to protect both sides.

Do I need a property management company?
It’s not mandatory, but it’s often worth it. A local expert like Your Home Managed can save you time, prevent mistakes, and ensure compliance.

What happens if I don’t act before the lease ends?
The tenancy becomes a rolling periodic agreement, which gives less security and control over future changes.

Can I choose not to renew a lease?
Yes - but you must give the correct notice and follow current legal procedures.

How much notice do I need to give to change the lease terms?
Usually, two months’ written notice is needed for rent changes or other major updates.