What to Do If a Tenant Refuses to Sign a Lease Renewal

22 July 2025

Dealing with a tenant who refuses to sign a lease renewal can be frustrating and stressful for any landlord. Whether you're managing one rental unit or multiple properties, stability and predictability in rental agreements are essential for maintaining steady cash flow and avoiding unnecessary disputes.

So, what should you do when a tenant decides not to renew their lease? Do you let them stay on a month-to-month basis, start eviction proceedings, or try to negotiate a new agreement? Let’s break it all down.

Understanding Why a Tenant Might Refuse to Renew

Before jumping to conclusions, it’s crucial to understand why your tenant isn’t signing the lease renewal. Here are some common reasons:

- Rent Increase Issues – If you’ve raised the rent significantly, they may be shopping around for a more affordable place.
- Dissatisfaction with the Property – Maintenance problems, outdated appliances, or security concerns might be pushing them to look elsewhere.
- Personal Circumstances – The tenant may be moving for a job, family reasons, or financial hardship.
- Flexibility Preferences – Some tenants prefer a month-to-month lease instead of committing to another long-term agreement.
- Disputes with the Landlord – If there have been ongoing disagreements, the tenant might be hesitant to continue the relationship.

Once you understand their perspective, you can determine the best course of action.

What Are Your Options?

If a tenant refuses to sign a lease renewal, you have a few potential paths to consider. Let’s go through them one by one.

1. Offer a Compromise

If the tenant is hesitant due to a rent increase or certain lease terms, consider negotiating. You don’t have to bend over backward, but a small compromise could keep a reliable tenant in place.

- Adjust the Rent Increase – If the tenant is concerned about affordability, consider a smaller increase or a gradual step-up over time.
- Modify Lease Terms – If they’re reluctant about a long-term renewal, offer a shorter lease term (e.g., six months instead of a full year).
- Address Their Concerns – If maintenance issues are a factor, commit to necessary repairs or upgrades.

Sometimes, a little flexibility can go a long way in keeping a good tenant.

2. Allow a Month-to-Month Rental

If the lease is expiring and the tenant doesn’t want to commit to another term, you could consider allowing them to stay on a month-to-month basis.

Pros of Month-to-Month Agreements:
✅ You keep receiving rent without a vacancy period.
✅ You have the flexibility to increase rent with proper notice.
✅ You can terminate the lease with proper notice if necessary.

Cons of Month-to-Month Agreements:
❌ The tenant can leave at any time, creating uncertainty.
❌ If they refuse to leave after notice, you may have a legal battle.
❌ It might not be ideal for long-term stability.

If stability is a priority for you, this option might not be ideal. However, for tenants with uncertain short-term plans, it can be a good middle ground.

3. Issue a Notice to Vacate

If the tenant refuses to sign a new lease and you’re not comfortable with a month-to-month arrangement, you may need to ask them to move out. The process typically looks like this:

1. Check Local Laws – Every state has specific notice requirements. Generally, landlords must give tenants at least 30 to 60 days' notice before ending a lease.
2. Provide a Formal Written Notice – Clearly state the lease end date and the expectation that they must vacate the property.
3. Follow Up – If they do not acknowledge the notice, check in to confirm they understand their responsibilities.

If they refuse to leave, you may have to take legal action, which leads to the next point.

4. Consider Legal Action If Necessary

In rare cases, tenants refuse to leave even after receiving a notice to vacate. This situation can turn into an unlawful detainer (eviction) case.

Here’s what you should do:

- File for Eviction – Follow your state’s legal process for eviction. This usually requires filing a formal case in housing court.
- Attend Court Hearings – If the tenant fights back, you’ll need to present evidence proving your right to reclaim the property.
- Work With a Lawyer – If the situation gets complicated, hiring a real estate attorney can help ensure you follow the law properly.

Evictions can be time-consuming and costly, but sometimes they are the only solution.

5. Prepare for the Move-Out Process

If your tenant decides to leave, ensure the move-out process goes smoothly:

- Schedule a Final Walkthrough – Inspect the property for damage beyond normal wear and tear.
- Return the Security Deposit (If Applicable) – Follow state laws regarding deposit refunds and deductions for repairs.
- Find a New Tenant Quickly – Start marketing the property early to minimize vacancy time.

Having a structured move-out process helps ensure you transition smoothly to a new tenant.

How to Avoid This Situation in the Future

Lease renewal issues can be stressful, so it’s best to take proactive steps to prevent them. Consider these strategies:

1. Start the Renewal Conversation Early

Don't wait until the last minute to discuss lease renewal. A good rule of thumb is to bring it up at least 60-90 days before the lease expires. This gives both parties enough time to make informed decisions.

2. Maintain a Strong Landlord-Tenant Relationship

A positive relationship with your tenant can make lease renewals much easier. Good communication, prompt maintenance responses, and fair treatment encourage tenants to stay.

3. Offer Incentives for Renewing

To encourage renewals, consider small incentives such as:
- A rent discount for signing early
- Minor upgrades (new appliances, fresh paint)
- Flexible lease terms (shorter or longer depending on their preference)

4. Ensure Your Rent Is Competitive

If your tenant is leaving due to a rent increase, research local rental rates to ensure your pricing is competitive. Raising rent is normal, but a drastic or unjustified increase can push good tenants away.

5. Stay on Top of Maintenance and Repairs

A well-maintained property makes a tenant more likely to stay. If they feel their concerns are ignored, they’ll look for better options.

Conclusion

When a tenant refuses to sign a lease renewal, it’s important to remain calm and assess your options strategically. Whether you negotiate, allow a month-to-month arrangement, or ask them to vacate, the key is to handle the situation professionally and legally.

By maintaining open communication, offering fair lease terms, and enforcing clear rental policies, you can minimize disruptions and keep your rental business running smoothly.