Lease Renewal Process SOP

1. Purpose:
The objective of this SOP is to establish a standardized process for managing
lease renewals efficiently and effectively, ensuring clear communication with
tenants and timely execution of lease renewal agreements.

2. Scope:
This SOP applies to all personnel involved in the lease renewal process, including
property managers, leasing agents, administrative staff, and accounting
personnel.

3. Responsibilities:
a. Property Manager/Leasing Agent: Responsible for coordinating and
overseeing the lease renewal process.
b. Administrative Staff: Responsible for preparing lease renewal documents
and managing tenant communications.
c. Accounting Personnel: Responsible for updating lease terms and rental
payments in the accounting system.

4. Lease Renewal Timeline:

a. Establish a timeline for initiating lease renewals, typically starting 90 days
before the lease expiration date.
b. Clearly define deadlines for each step of the process, including tenant
communication, document preparation, and execution.

5. Tenant Communication:
a. Notify tenants of the upcoming lease expiration and the opportunity to renew
their lease.
b. Provide tenants with a lease renewal offer outlining the new terms, such as
rent amount, lease duration, and any changes to the lease agreement.

6. Lease Renewal Document Preparation:

a. Prepare the lease renewal agreement based on the terms agreed upon with
the tenant.
b. Ensure all relevant lease provisions are included and comply with local laws
and regulations.
c. Review the lease renewal document for accuracy and completeness.

7. Tenant Response and Negotiation:

a. Establish a deadline for tenants to respond to the lease renewal offer.
b. Address any questions or concerns raised by tenants regarding the renewal
terms.
 c. Negotiate with tenants if necessary to reach mutually agreeable lease
terms.

8. Lease Renewal Execution:

a. Once both parties have agreed to the renewal terms, schedule a meeting
with the tenant to sign the lease renewal agreement.
b. Provide a copy of the executed lease renewal agreement to the tenant for
their records.
c. Update the lease terms in the property management system and accounting
records.

9. Lease Renewal Follow-Up:

a. Confirm with the tenant that they have received a copy of the executed
lease renewal agreement.
b. Provide any additional instructions or information related to the lease
renewal, such as move-in procedures or rent payment changes.
c. Document the lease renewal in the tenant's file and maintain a record of all
communication and documentation related to the renewal.

10. Review and Improvement:

a. Regularly review the effectiveness of the SOP and make necessary
revisions based on feedback and evolving needs.
b. Ensure compliance with local laws and regulations governing lease
renewals.
c. Document any changes made to the SOP and communicate them to all
relevant personnel.