How are lease renewals typically handled in standard residential leases?

Lease renewals are typically handled through a written agreement by both parties for several important reasons. Firstly, a written lease renewal provides clear documentation of the terms and conditions under which the lease is being extended, which can help prevent misunderstandings or disputes in the future. This formal approach ensures that both the landlord and tenant are on the same page regarding any changes to the lease terms, such as rent adjustments or maintenance responsibilities.

Additionally, having a written agreement supports legal enforceability. In many jurisdictions, having a signed document that outlines the continuance of the lease can protect the rights of both parties. It serves as a legal record that can be referenced in case of any issues that may arise during the renewed lease period.

While a verbal agreement may carry some weight, it lacks the stability and reliability of a written contract, which is why it is less commonly used for lease renewals. The concept of a default extension after the lease end date could apply in some situations, but it often leads to uncertainty regarding terms and can complicate future transactions. Similarly, a renewal fee paid by the tenant is not a standard practice in all jurisdictions and can vary widely based on specific lease agreements.