What does lease renewal involve?

Lease renewal primarily involves extending the existing lease agreement for another term under the terms initially agreed upon or new terms if negotiated. This process allows the tenant to continue residing in the property without having to vacate and reapply for a new lease, which can be beneficial for both parties.

Option A captures the essence of lease renewal by indicating that both the landlord and tenant agree to continue the tenancy, typically under similar conditions as those in the previous lease, unless modifications are discussed. This can include factors such as the duration of the extended lease and any adjustments that might be made to the original terms.

While negotiating new rental rates and terms can be a part of the renewal process, it is not the defining characteristic of lease renewal itself. Lease renewal is fundamentally about continuing the existing agreement rather than completely starting anew or transferring obligations to another party. Therefore, the focus remains on the continuity of the existing lease rather than a complete overhaul.