12 Month Lease vs short term renewal Question.

[Alex Smith]

Hello everyone,

I have a lease renewal question from a landlord’s perspective. I currently have a rental property with a lease set to expire at the end of July, which is typically considered the high season in this area. The lease is a standard California agreement that allows for a month-to-month arrangement after the initial term ends.

Here’s the situation: the tenant has expressed interest in extending their stay only through the end of October, rather than signing a new 12-month lease. My concern is that this would push the property’s availability into the slower rental season, potentially making it more difficult to find a new tenant and possibly leaving the unit vacant for an extended period.

Is it common practice for landlords to require tenants to either sign a full 12-month renewal or vacate at the end of the current lease term? I’d appreciate any insights or best practices others have used in similar scenarios.

Thanks in advance!

[Ghassan Jabali]

Hello Alex,

I hope you're doing well. Generally, California is a very tenant friendly state and there are a lot of protective laws at both the state and city level in favor of tenants. Signing a full 12 month lease is possible, however, they may likely break the lease and your ability to pursue them for the damages may vary depending on state statutes and local city ordinances. Allowing them to stay beyond the lease terms in a month to month tenancy can allow you to continue to lease the premises, with a potential rent increase because its month to month, but not have any broken lease situation. However, it does come with the draw back of them likely leaving at the end of October and you being stuck without tenants during a potential slow season. As you mentioned, you could simply not renew the lease with them and set the expectation/send the notice that they must vacate at the end of the lease term so you can then lease to tenants willing to stay for the full 12 month term. This could allow you to re-rent your property during peak renting periods.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.