When Your Lease Ends: What Tenants and Landlords Should Do

Answer

When a lease expires, both tenants and landlords face key decisions about staying, renewing or moving on. Understanding lease expiration rules and timelines helps prevent misunderstandings, additional charges or unintended holdover tenancies.

Here’s what typically happens at lease end and the options each party can consider.

• Automatic renewal or month-to-month: Many leases include a clause that converts the agreement to a month-to-month tenancy if neither party gives notice. Rent and other terms usually remain the same, but either side can end the tenancy with proper notice—often 30 days for tenants and 60 days for landlords, depending on state law.
• Renewing the lease: If both parties want to continue, they may negotiate a new fixed-term lease. Landlords often update rent or add new provisions; tenants should confirm any changes in writing before signing.
• Vacating the property: To move out, tenants must typically give written notice—commonly 30 or 60 days—before lease end. They should restore the unit to the original condition (minus normal wear and tear), return all keys and provide a forwarding address for security deposit return.
• Security deposit and move-out inspection: After tenants leave, landlords conduct a walk-through, note damages beyond normal wear and tear and deduct repair costs from the security deposit. Many states require returning the remaining deposit within a set period (e.g., within 21 days in California or 30 days in New York).
• Holdover tenants: If a tenant remains without landlord’s consent, the tenancy automatically continues under month-to-month terms in many jurisdictions, but landlords may charge a higher “holdover rent” or pursue eviction under unlawful detainer laws.

Both sides should review the original lease for notice requirements and any renewal options. It’s also wise to document communications in writing and keep records of notices served, move-out checklists and deposit accounting.

Whether you plan to renew or vacate, clear communication and timely notice help avoid disputes. It’s advisable to consult a licensed attorney or experienced real estate agent if you face special circumstances—like rent increases exceeding state caps or unexpected holdover situations.