5 Reasons a Landlord May Choose Not to Renew Your Lease
There are plenty of good reasons landlords won’t allow contract renewal
If your lease is coming to an end, it's time to consider what to do next. In most cases, you'll either opt to renew the lease or you'll move out and find another place to live. But, what if it's not up to you and your property manager chooses not to renew your contract?
In most situations, landlords are not required to offer lease renewals and it may leave you scratching your head, wondering why they wouldn't want to do the easy thing and re-sign a lease with the same tenant. Here are a few reasons for the non-renewal of a lease from the landlord's perspective.
Reasons for non-renewal of a lease
Unless there's a provision in the lease that specifies otherwise, a landlord is typically within their rights to end the lease at the termination date spelled out in the rental agreement. They aren't required to give you a reason why so here are a few scenarios that may cause them to not renew the lease agreement.
1. The property owner is selling the property
Some landlords have owned rental income properties for years and don't want to maintain them anymore. Others might have purchased a property to rent it out, then quickly found it's not what they want to do. In these cases, landlords may sell their property and won't have control over renting, thus, they can't allow a tenant to live there.
2. It will no longer be a rental property
Some landlords decide that a property will no longer be a rental. This is for various reasons — they might want to move in themselves and use it as a primary residence or maybe they want to use it as a vacation home for their family.
3. The landlord is renovating the rental
Over time, it's completely normal for a property to become outdated and show signs of wear and tear. Good landlords will recognize when their property needs an upgrade so that it will be a habitable and desirable place to live.
If they plan to do extensive work, such as a full renovation, they obviously can't have someone living there among the construction mess. Projects like that typically take months and it wouldn't be reasonable to displace a tenant for such a long period, so they decide not to have renters during the renovation period.
4. Another tenant has already signed
In some cases, landlords will have new tenants already lined up months before they terminate the property's lease. This is especially common in a highly competitive rental market when landlords want to guarantee that they'll have a renter at all times.
5. Issues with the tenant
If you're a great tenant, you shouldn't have any problems with your property management. However, not all tenants are so great and some cause serious issues, which end in lease terminations. These can include property damage, failing to adhere to the rental payment date (or they may fail to pay rent at all), noise complaints from neighbors or straying from terms specified in the lease agreement.
On top of those reasons, the landlord may suspect illegal activity or behavior in general that they don't approve of. If there's suspicious activity, but no proof of anything illegal happening, a landlord might decide to play it safe and not renew a tenant's lease agreement. After all, they don't want to get a call from the cops concerning the property and then need to take legal action.
Things to keep in mind about a notice of non-renewal
There are a few additional things to keep in mind if you don't get to renew your lease agreement. These can help you further understand your rights, your landlord's rights and any other party involved.
A reason isn't required
Just as a tenant doesn't have to tell the property owner why they aren't going to renew a lease, a landlord doesn't need a reason for not wanting to renew a lease agreement. So, if either of the parties decides not to renew, there's nothing anyone can do. In fact, a landlord can end the lease "just because" and legally, no one could argue against it.
It's not always a bad thing
There are a variety of reasons a landlord doesn't allow a lease renewal and it's likely not personal or anything against the tenants. Unless you're a bad tenant, you've got nothing to worry about in the lease termination process.
You can ask why your landlord isn't renewing your lease
If you're really curious as to why the manager of a rental property won't let you renew a lease, you can always ask! That doesn't mean they'll give you an answer, but there's also a good chance that they'll tell you the reason for non-renewal.
Don't be afraid to ask, especially if you haven't done any property damage and you've adhered to the lease agreement the entire time. If you've been a good tenant, a good property manager will notice and they'll probably tell you why you can't rent from them anymore.
End your lease on good terms
No matter why your landlord didn't renew your lease, it's best to leave things on good terms, especially if they gave you proper notice. In many cases, the lease non-renewal isn't anything personal against the tenant, so unless your landlord tells you specifically why they're not renewing your lease, assume that it's nothing against you.
There's no good reason for rudeness or unreasonable behavior when ending a lease and moving out of a rental property. Plus, one day it could come back to haunt you if you leave on bad terms. You may want to rent from the landlord later or need a reference when renting a new place and if you burn a bridge with them, future opportunities could be affected. So, stay calm, be respectful and find your next dream property to live in!