Letter of Intent to Renew Lease

What is a Letter of Intent to Renew Lease?

A Letter of Intent to Renew Lease (or Letter to Request for Extension of Lease) is a document that is used by a person who is renting real property (the "renter") to inform their landlord that they would like to renew or extend their lease whether it is for residential or commercial purpose.

What is the difference between a Letter of Intent to Renew Lease and a Letter to Request for Extension of the Lease?

A Letter of Intent to Renew the Lease is used when the renter would like to enter into a new lease agreement with the landlord. The renter and landlord could choose to have the same terms and conditions as the original lease or they could negotiate on and agree upon new terms and conditions for the renewed lease.

On the other hand, a Letter to Request for Extension of the Lease is used when the renter would like to extend the lease without entering into a new lease agreement. This is usually used when the extension is on a short-term basis (i.e. a couple of months), which usually happens when it is inconvenient, expensive, or impractical for the renter to move to a new place during the period of the requested extension. Some examples of situations when the renter would ask for an extension of a lease are:

• The renter is moving to another country in a few months,
• The lease of the renter for a new place will not start for a few weeks, or
• There is an unexpected delay in moving out of the property.

Notice that in all the situations listed above, it would have been inconvenient, expensive, or impractical for the renter to look for and move to a new place considering that the period for leasing a new place would have been very short.

Is it mandatory to have a Letter of Intent to Renew Lease?

The renter can provide a written Letter of Intent to Renew Lease or he may also choose to verbally make a request to the landlord. There is no legal requirement to have a written Letter of Intent to Renew Lease. However, it is better to have a written Letter of Intent to Renew Lease so that the renter has proof or documentation that the letter has been received or accepted by the landlord, this will prevent the landlord from reneging on his acceptance of the renewal or extension of the lease.

What must a Letter of Intent to Renew Lease contain?

A Letter of Intent to Renew Lease contains the following information:

• The details of the renter,
• The details of the landlord,
• The property rented,
• The purpose of the lease,
• The reason for the intent to renew or extend the lease,
• The original end date of the lease, and
• The desired new end date of the lease.

Who is involved in the Letter of Intent to Renew Lease?

The sender is the renter who wants to renew or extend the lease. The recipient is the landlord or his authorized representative. The sender must affix his signature to signify that he wants to renew or extend the lease.

What has to be done once the Letter of Intent to Renew Lease is ready?

If it will be sent via registered mail, at least two original copies should be printed. Both original copies of the letter should be signed by the sender (the renter who wants to renew or extend the lease). One original copy should be kept by the sender and the other should be sent to the recipient (the landlord or his authorized representative) by registered mail. After sending, the registry receipt or mail receipt in relation to the mailing of the second original copy must be kept by the sender.

If it will be sent via email, the sender must send an email attaching one scanned copy of the letter that is duly signed by the sender or one digital copy that is electronically signed by the sender. An email is a recommended way of sending this letter as the letter is sent instantly and it will enable the parties to keep their records in a convenient manner.

What are the costs involved in the finalization of the Letter of Intent to Renew Lease?

Costs for sending the Letter of Intent to Renew Lease may depend on the method used by the renter in sending the letter. Email and instant messaging are the most cost-efficient ways of sending a letter as they are generally free, whereas costs for registered mail or courier will be dependent on the distance between the residence of the renter and the landlord.

Which laws are applicable to the Letter of Intent to Renew Lease?

There are no specific laws that govern a Letter of Intent to Renew Lease. However, matters related to leases and contracts are generally governed by the Civil Code of the Philippines.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.