What is an "option to renew" in a lease agreement?

An "option to renew" in a lease agreement is accurately described as a clause that grants a tenant the right to extend the lease under specified terms. This provision is beneficial for tenants who wish to continue occupying the rental property without having to renegotiate a new lease from scratch. The clause typically outlines the conditions under which the tenant can exercise the option, including the duration of the renewal period, any changes in rent, and the notice required to inform the landlord of the tenant's intent to renew. This ensures stability for the tenant and allows them to secure their living arrangement for an additional term while maintaining certain favorable conditions set forth in the original lease.

The other options relate to different aspects of lease agreements and do not capture the specific nature of an "option to renew." For instance, provisions regarding rent increases after a lease expires address the landlord's rights and are separate from a tenant's renewal option, while clauses for early termination focus on ending the lease prematurely rather than extending it. Additionally, requiring a fee to renew a lease is not a standard practice associated with an "option to renew," as this concept does not inherently involve additional costs for the tenant to extend their lease.