Ohio rental market is quite balanced, with an average vacancy rate of 7%. When the end of a rental lease in Ohio, is quite near, there is a decision to make. The decision can be taken by both the landlord, as well as, the tenant. The choice is between renewing the lease and leaving the premises. If both the parties, reach the consensus of renewing the lease, it is always a good thing to do, for the following reasons:
- Both the landlord and the tenant can save a lot of time. The landlord does not have to find a new tenant, and, on the other hand, the tenant saves the time for looking for a new establishment.
- In case, there is a reliable and trustworthy association between the two parties, there should be no second-thoughts about renewing the lease.
- There are also costs involved, both in finding a new tenant and searching for a new establishment. This money stays safe in the pocket.
A rental agreement, also known as a lease, is nothing but a binding contract between the landlord and the tenant, to set and amend the rules, terms and conditions, for either party’s use and occupancy of any kind of residential premise. A well-drafted lease eliminates most of the problems, which might occur in a landlord and tenant relationship. This lease benefits both the parties. It is always a wise decision to chart out the rules of termination of the lease. In absence of any written lease, the tenant or the landlord can end the month-to-month tenancy by informing the other party, the decision of not renewing the contract.
Types of Rental Agreements
There are various kinds of rental agreements in Ohio:
- Standard or fixed-term lease agreements: These lease agreements usually last for twelve months, but can also be for a specific time-frame, which the lessor and lessee may agree upon.
- Room Rental or Roommate agreement: This agreement is specifically meant for individuals, who share a home, by occupying each of the rooms separately. They share the common areas or the main segment of the establishment.
- Periodic or month-on-month lease agreement: A month-to-month tenancy is also known as a periodic tenancy. This kind of agreement entails an agreement between the tenant and the landlord from one month to the other, instead of a fixed period of time.
Now, this periodic rental lease agreement is a very interesting thing as it is often a very good alternative to rent renewal. After the lease expires, the landlord will treat the tenant as a month-to-month candidate. The tenant will stay on the premises, and the landlord will continue to accept the rent.
What are the reasons for not renewing a lease in Ohio?
Renewing a lease may always not be a feasible option. Let’s check why:
- There might be issues, sometimes irrevocable, between the tenant and the landlord.
- The landlord may not decide to renew the lease in Ohio if he thinks the tenants are not reliable. He might be having a tough time in exacting rents from the tenants.
- The tenant may decide to terminate the lease agreement after the time gets over. He may have issues with the facilities provided or not provided, to be precise.
- The landlord may decide to upgrade the premise. When somebody is already staying there, it becomes difficult. This is when they can decide not to renew the contract.
How to renew the lease?
Ohio has certain guidelines about renewal timeframes. Be it the tenant or the landlord, both should be proactive with the terms and conditions of the renewal. There is a proper time frame for confirming with both the parties, whether there will be a renewal of the license. As part of every lease, you should consider suitable renters insurance coverage. Learn more about Ohio renters insurance here
If there is a renewal, the new lease should have the appropriate changes in both the rent amount, as well as, the time-frame, besides other terms and conditions.
It is always good to have a lease renewal, as one can avoid many hassles. But renewal should only be the option, when the lease is subject to all kinds of legalities and facilities, on behalf of both the parties. The landlords and the tenants can also make themselves aware of the notarization needs of Ohio, for any lease that lasts more than three years. This also covers the automatically renewing leases having no date of termination.