4 Reasons to Renew your Lease this Year

Way back when I was college student, for some reason I had the impression that you were supposed to switch apartments each year.  You live in the dorms your freshman year, then you get an apartment your sophomore year and again a new one for your junior and senior year.   If you become a “Super Senior” like yours truly, you'll get even another apartment. Now that I’m a little older and wiser (that’s debatable), I realized I cost myself not only a lot of beer and pizza money, but also added undue stress and a lot of wasted time.

In this article I’ll mostly discuss the advantages of renewing your lease agreement.  Of course I know renewing is not always a viable option.  If you no longer get along with your roommates, you hate your landlord, you’re moving to another city, etc etc than of course renewing is not an option for you.  But if you generally like where you live now, why move?

After talking with a lot of renters over the years, I've gathered that there are 4 main advantages to renewing your current lease. 1. It’s cheaper in the long run 2. It’s less stressful (physically & emotionally) 3. It’s less time consuming 4. Reduces uncertainty

Lets examine those 4 more in depth

It’s cheaper in the long run.  If you renew your lease, the only new expense might be an increase in rent and that is usually 0-3% (at Renaissance Rentals, it is generally about 1% unless your current rate is well below market rate).  By renewing you generally get a lower rate than a new person just moving in.  If you’re a good resident, a landlord wants you to renew and they will offer you a lower rate than a brand new resident.

Compare that with the costs of moving...

• Renting a moving truck $100 - $200


• Gas $50


• Moving supplies - Boxes ($3-$5 per box X 20 boxes = $60 - $100), packing tape, mattress covers, bubble wrap, etc $75 - $150


• Cleaning supplies $10 - $50


• Buying food and drinks for friends that help you move - $25 - $100


• Eating out first week you’re in new home because you’re not setup to cook $75-$150


• Buying new food & household supplies lost in the move -  $50-$100


• Security deposit + 1st month rent at your new place - $500 - $2000


• Turnover costs - when you move out of your current place there are often expenses deducted from your security deposit (cleaning, painting, carpet cleaning, misc damages).  Even for the tidiest of individuals, there are often some expenses deducted from the deposit $100 - $1000 (could be more if carpet has been damaged or significant damage to walls)


• Double rent - generally there is an overlap in your leases.  For a few days or weeks, you’ll likely be paying rent on multiple apartments  $50 - $500

When you add that all together, you could be looking at close to $1000 on the low end and $4500 or more on the high end just to move from your current apartment. $4500 is pretty unlikely but $1000 - $2000 in expenses is quite reasonable.  Even if rent is a little cheaper at the new place, compare that with what it’s going to cost you to move.  In most cases, staying at your current place makes more sense economically.


Less stress (physical & emotional) - I don’t know why this is, but moving day seems to always be a day with terrible weather; it’s raining, snowing, extremely hot, extremely cold or some combination of those.  Is there anything less appealing than moving your great grandmother’s antique chest from your third floor apartment when it's 92 and humid?  Moving also tends to turn into a “bad mood activity.”  It is hard physical labor plus everyone has their own opinion on how to best organize the moving truck.  I’m no longer amazed when I see folks yelling at each other as they decide where best to situate the mattress in the moving truck.

Why not avoid that stress this year and sit on your porch sipping your favorite beverage as you watch your neighbors break their backs moving.

Less time consuming - To renew your lease you’ll be looking at about 5 - 10 minutes.  Generally you sign a one page renewal and you’re done.  Your living arrangement is now set for the next year.

Now compare that with moving.  Here’s a list of some tasks that will chew up your valuable time if you plan to move...

• Searching the Internet, advertisements, etc for a new place


• Taking tours of potential new apartments


• Filling out applications and signing a new lease


• Turning off utilities at your current place and turning utilities on at your new place (gas, water, electric, trash, Internet, Cable)


• Forwarding your mail


• Buying stuff for packing, cleaning supplies for your new apartment


• Packing


• Cleaning / Painting


• Moving


• Unpacking


• Setting up all of your furniture.


• Waiting around for the cable guy

I’m exhausted just writing that list.  Now imagine doing all those things.

Reduces Uncertainty - If you stay where you are now, you pretty much know what to expect.  If you’re even thinking about renewing your lease, you probably like or can at least tolerate your neighbors, the maintenance is taken care of promptly,  and management is fair with you.

Moving can open a whole new can of worms.  The saying “the grass isn't always greener on the other side” is a warning to you. You may end up hating your neighbor, the new apartment may have sever maintenance issues that are not addressed promptly and you might end up with a slumlord.

When you get that letter this year about renewing your lease, remember to weigh the advantages and disadvantages of moving.  You might be surprised how much happier you’ll be by renewing your lease.

If you have other thoughts about the advantages or disadvantages of moving or renewing, please share your comments below.