Tenant refuse to sign renewal lease, does it automatically become month to month?

Question

or do i have to sign a month-to-month agreement?

Roger Lemley · Answer

My leases do not convert to month to month. If a tenant doesn't want to sign a new contract, and the old contract expires, then they're squatting.

William Sing · Answer

Hi @Joaquin Reyes,

It sounds like you've already moved over to a month-to-month situation with your tenants and have an appointment set up to discuss renewing for another year. That's great!

In Oregon, the lease typically converts to a month-to-month automatically if the renewal isn't signed, which seems to be the case here. Since you're outside of Portland, the 90-day rent increase notice isn’t as critical, but I still recommend using it as a standard practice. It gives everyone enough time to make decisions and reduces the chances of any misunderstandings. Oregon has capped rent increases at 7% + CPI (10%) max for future reference as well.

For resources, I'd suggest looking into forms and information provided by either Multifamily NW or the Oregon Rental Housing Association. They offer some great oregon-specific forms that can help you stay compliant and organized. Whether you're drafting a new lease or just need a 30-day notice template, these organizations are a solid go-to.

I also recommend setting up a consistent process for handling lease renewals. By establishing a clear timeline and communication strategy, you can avoid last-minute scrambles and ensure that both you and your tenants are on the same page. The one I typically use is:- 90 days out from lease renewal - Send rent increase notice- 60 days out from lease renewal - Ask if they are looking to stay or leave. - 45 days out - Make sure if they are staying to get the lease signed ASAP. If they do sign, setup the billing. I usually use Innago since its relatively cheap and fairly customizable. If they are leaving, setup a walkthrough to figure out what you need to do to turn the unit and provide notice form for them to offically say they will be vacating.  - 15 Days prior - Setup a time day to do final walkthrough and transfer keys. - Day of, change locks.

Good luck with your meeting, and feel free to reach out if you need any more advice or resources!

Cheers,
Will

Joaquin Reyes · Answer

Thank you Lynn, Nathan, Andrew, Corby, Devon and Adam, for your advice. The tenant lease expired 7/31/2024.  They are good paying renters. They paid the August rent by 8/5/2024. No problem there. I have an appointment with them to negotiate another year lease.  The lease has become month to month.  Either way month to month or new year lease, they are getting a 30 day notice i'm leaving with them tomorrow for a modest rent increase.  This renters pay on time and this will be their 3rd year to renew, they just want extra repairs to be done to property. So I'll negotiate and meet them halfway on those extra repairs they want done since they are good paying renters.

Devon Verno · Answer

Its going to depend on what your state permits. Here in PA, if we send a renewal to a tenant and provide a minimum of a 30 day notice letting them know not just of the renewal itself but also any change in terms, even if the tenant does not sign it the new terms can go into affect. Our tenant remains month to month in that case. When providing a lease renewal we provide 4 options - sign a 1 year lease for a lower increase, sign a month to month at a higher increase, submit a move out notice if you wish not to renew, or choose to do nothing and receive the highest rent increase (with a clause that once they select from the other 3 options the rent amount will be adjusted accordingly not not made retroactive)

Nathan Gesner · Answer

1. Your lease should address this. If it doesn't, then fall back on state law.

2. When you fail to renew a lease, it typically continues on a month-to-month basis automatically.

3. I recommend you always be clear about what is happening. Send the tenant a written notice that if they do not sign the renewal, then the lease will convert to a month-to-month basis, what the rent rate will be, how they can give notice when it's time to terminate, etc.

It sounds as if these tenants are pushing you around and dictating the terms. If that's the case, I would give them notice of termination and start with a fresh renter.

Lynn McGeein · Answer

@Joaquin Reyes did your renewal lease also include a required notice to vacate if tenant does not sign?  If I’m increasing rent or extending lease term, I send a lease addendum that rent is increased to $x per month starting x date and/or term extended through certain date, along with a letter stating see addendum for review and signature and that if tenant does not sign and return addendum to me by a certain date, then this letter is my notice to vacate by end of current lease term.  Looks like Oregon has strict laws about notice and cause for termination, so you may want an attorney to advise you so you’re following proper procedures.

Corby Goade · Answer

Most states have laws that make leases automatically roll in to M2M if they have no specific clauses for renewal.

That being said, I'd suggest you start interviewing property managers and make this experience more passive for you. There's huge liability in PM and guessing can be really expensive and stressful.

Andrew B. · Answer

If you allow tenant to stay and accept rent from them, your lease becomes a month to month lease. It doesn't matter at that point if your lease has wording about it or not.

That being said, if I offered a lease renewal and the tenant refuses to sign, the next thing they are getting is a notice to vacate. You either sign my lease or find a new place.

Chris Seveney · Answer

Depends on what your lease states. That will tell you the answer. No one on BP can answer it without your lease

Tenant refuse to sign renewal lease, does it automatically become month to month?

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