Lease Renewal Tips: How to Navigate Your Contract Extension

Don’t know if you should pursue a lease renewal for your current condo property?

There are many factors and considerations that you need to think about before you renew your rental contract. From reviewing your existing rental agreement to evaluating your circumstances, and even asking legal experts if lease and rent are the same, there are many questions you’ll have to answer to make an informed tenancy decision.

Before you sign your lease contract, you need to understand these critical factors and evaluate them accordingly, so that you can ensure the best possible renting experience for yourself. This guide by DMCI Homes will help you go through these crucial considerations for your negotiations so that you can make the best and most informed home rental decisions possible.

Ready to pursue the best negotiation process possible for your extended contract? Learn how to examine key factors for your rental agreement with this comprehensive guide by DMCI Homes.

Photo courtesy of Ono Kosuki via Pexels

Reviewing the renewal agreement

There are many things you should consider when it comes to renewing your rental for another year - one of which is the actual contract itself.

Are you still aligned with the agreement’s terms and conditions? Do these clauses still fulfill your needs as a tenant? Here are some of the main points you should assess when reviewing your renewal agreement before the end of your current lease period:

• • Potential rent increases - Talk to your landlord and see if they’re proposing any rent increases for your current home. If they are, evaluate this increase and compare it with market rates across other condos. This will help to inform you when you negotiate your rent for your next rental agreement.
  • Renewal period duration - What is the proposed length of your upcoming renewal period? Compare the duration of this period with your long-term plans, and see if the proposed timeline fits into your future plans and endeavors.
  • Clauses and conditions - Make sure to revisit important clauses and conditions in your contract. If things like added maintenance responsibilities, payment penalties, and tenant limitations no longer work with your ongoing lifestyle, assess your long-term lease and see if it’s possible to renegotiate these contentious clauses.

   

  Once you’ve reviewed your old agreement and assessed the things that need adjusting for your future contract, you can then take a look at your current living conditions to see if your home is still a good fit for your lifestyle. Check out the next section of this guide to learn more about this necessary review.

  Photo courtesy of RDNE Stock project via Pexels

  Assessing your current living conditions

  Even if you’re okay with the terms and conditions currently listed in your condo rental contract, your actual condo home may tell an entirely different story. Make sure to assess the following aspects of your unit as you go through this entire renegotiation process:

  • Physical condition of the property - Make sure to thoroughly inspect your home’s current physical conditions, including its plumbing, electrical connections, and other structural concerns. If there are any unresolved issues, consult your landlord to conduct comprehensive rental property maintenance.
  • Neighborhood and community - Aside from your physical living conditions, make sure to assess your relational conditions as well. Reflect on the neighborhood and community at your condo, and think about if you feel safe and satisfied with the amenities and people at your current location.
  • Landlord-tenant relationship - Another important aspect you should consider when assessing your current living conditions is your relationship with your landlord. Think about their quality of communication, their responsiveness, and their ability to foster a good landlord-tenant relationship when you consider renewing your stay under their management.

   

  After you assess your current contract and living conditions, you can move on to more personal considerations for your renewal - your financial capabilities. Take a look at the next section for tips to review your own ability to extend the lease on your condo home.

  Photo courtesy of RDNE Stock project via Pexels

  Financial considerations for the lease extension

  One important aspect that you should review for your contract extension is your long-term financial ability. Here’s some advice on your lease that you should take into account when it comes to managing your finances:

  • Affordability - Sit down and analyze your current budget and savings. Do you have enough saved up to renew your rental, or would it be cheaper to move to a less expensive home? See what options are most affordable, based on your own budget practices and savings history.
  • Security deposit and additional fees - One of the other financial considerations for your lease extension is your security deposit. How will it be handled in light of a newmonthly rental agreement? Discuss this with your landlord and see if there will be any other additional fees associated with your extension before you make any final decisions.
  • Potential savings - As you review and assess your financial capabilities, try to predict potential savings possibilities too. Do your research and ask your landlord if there are potential discounts or benefits to extending your contract. If none, see if you incur more savings by moving to a different condo instead.

   

  With all these considerations in mind, you might feel the need to explore other condo options for your future home. Continue to the next section to discover other potential rental options before your tenancy renewal.

  Photo courtesy of RDNE Stock project via Pexels

  Exploring other potential rental options

  Whether you’re moving to another condo or considering other property types entirely, it’s good to compare and contrast all your possible rental options. This will help you see if there are better homes available on the volatile housing market, or if extending your current contract is the safer, more stable way to go.

  If you’re thinking of moving into a new condo, here are some of the pros to doing just that:

  • Fresh start - Moving out of your current home and into a new one means you’ll get a fresh start on everything. You’ll get to meet new people, live in a new neighborhood, and refresh your life entirely.
  • Better living conditions than before - If you feel the need to move because your current home isn’t working for your needs anymore, you’ll likely take the time to find a new condo that offers better living conditions than what you have right now.

   

  Photo courtesy of Karolina Kaboompics via Pexels

  On the other hand, here are some of the cons to moving house in today’s rental market:

  • Long and arduous move-out process - Moving out can take a long time. Not only will you have to sort and pack your belongings before moving them to a new location, but you’ll also have to coordinate with your landlord regarding the total turnover of your unit.
  • Expensive move-out logistics - More than taking a while to move out, but you’ll also have to spend money on the logistics of your move. Some of the expenses you’ll have to consider from your move-out checklist include association dues, cleanup fees, moving van costs, and more.
  • Unpredictable housing market - If you don’t assess your move-out choices properly, you may become subject to an unpredictable housing market. Renting prices may change without your knowledge, affecting the viability of your move-out plans.

   

  It’s important to explore other possible condo options if you need to switch homes. But if you’re happy with where you’re living right now, you might just need tips to improve your current contract for a better stay overall. Check out this next section for legal tips to navigate your extension.

  Photo courtesy of Ketut Subiyanto via Pexels

  Legal tips for the renewal of lease contract

  To secure the best possible terms for your contract extension, you need to know what to expect when it comes to your legal rights and obligations. By familiarizing yourself with the rules, your responsibilities, and other possible lease issues, you can set up legal protections that will ensure a smooth renewal for yourself in the long run.

  Here are some helpful tips to familiarize yourself with the legal aspects of your condo contract renegotiation:

  • Know your rights. Read up on condo tenant laws in the Philippines to understand what your basic rights are as a renter. This will empower you to defend yourself when your rights are being violated at any point throughout the renewal process.
  • Review your current contract thoroughly. As mentioned in an earlier section, make sure you review and comprehend your existing rental contract thoroughly. Don’t be afraid to ask questions and propose revisions for your upcoming lease extension - by being proactive in this manner, you can easily waylay any possible legal risks.
  • Consult a legal professional. As you negotiate your lease renewal, consult with a legal professional to ensure all your bases are covered. They can give comprehensive and well-thought-out advice throughout your contract negotiations, ensuring that you secure the best terms possible for your next year of tenancy.

   

  Making these big decisions for your renewal can seem intimidating at first, but with the right advice and assistance, you can navigate your way through this contract extension with ease. To make that final call for your next living situation, make sure to check out the tips in the next section.

  Photo courtesy of Gustavo Fring via Pexels

  Making the final decision for your renewal

  To make the final decision for the next year of your tenancy, you’ll want to think about all the factors that will affect the quality of your rental experience. From assessing your current living situation to exploring other condo options, you’ll need to conduct this research to make fully informed decisions and negotiate the lease renewal as thoroughly as possible with your landlord.

  Here are some final comparisons of the pros and cons of pursuing an extension for your current condo home:

  Pros	Cons
  No expensive move-out costs or complicated logistics	Possible rent increase during the renegotiation process
  Longer time to foster a great landlord-tenant relationship	Potentially continuing your stay with a bad landlord
  Better sense of stability for both the landlord and tenant	Limited ability to conduct major renovations on property

   

  With the pros and cons of the renewal process in mind, here’s a simple checklist of steps to take before you sign your rental extension agreement:

  • Review the renewal terms. 
  • Reflect on your current living situation to see if you’re still happy with it.
  • Assess your finances to see if a renewal is the most cost-effective way forward.
  • Study the housing market and compare your rental costs with other properties.
  • Negotiate new terms with your landlord based on your research.
  • Get a legal professional to help draft the new agreement.
  • Review the new agreement one more time.
  • Sign the agreement to confirm your lease extension.

   

  All these assessments, comparisons, and explorations serve to ensure the success of your future plans. Whether you choose to extend your condo lease or move to an entirely new home, you can use all these tips and information to plan for a smooth and successful transition towards a new year of condo tenancy.

  Photo courtesy of Andrea Piacquadio via Pexels

  Navigating your lease renewal agreement

  If you take time and effort to assess and negotiate the best possible lease renewal agreement for your needs, you can ensure a successful extension to your rental contract. Always remember to review your existing agreements, assess your finances and living conditions, and be as thorough as possible throughout this entire process to get the best possible results for your upcoming renewal.

  Stay informed and be proactive when it comes to your lease. With this attitude towards your home, you can work up to even better rental agreements and manage your way toward eventual home ownership in the long run.

  Photo courtesy of Khwanchai Phanthong via Pexels

  Key takeaways

  Think you’re ready to renew your rental agreement? Remember to take these final tips away with you as you embark on this brand-new lease on life:

  • Take your time to be as thorough as possible. Start thinking about your lease renewal in advance so you can take as much time as necessary to assess your current options.
  • Compare and contrast your options. Do your research and assess other housing options to see if your current home is the best one out there. If it isn’t, use your research to propose improvements to your existing agreement.
  • Ask for professional guidance. Not sure how to do this on your own? Don’t be afraid to reach out to your DMCI Homes property manager for tips towards extending your rental contract.

   

  To stay up-to-date on DMCI Homes Leasing options, remember to check out the DMCI Homes Leasing and to follow our social media accounts too: Facebook, Twitter, Instagram, and YouTube.