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Can a Landlord Deny a Lease Renewal After Verbally Agreeing to One?

Imagine your landlord tells you, “Don’t worry, we’ll renew your lease.” You leave the conversation feeling relieved, only to receive notice a few weeks later that your lease won’t be renewed after all. In this guide, we will address the question: Can a landlord deny a lease renewal after agreeing to it verbally? 

The answer to the question is not a simple yes or no. This is because a landlord’s verbal agreement doesn’t always carry the same legal weight as a written lease renewal. And so, before you take the next step, here are some things you should know before assuming you have to move or that your landlord acted unlawfully.

Main Takeaways 

  • A verbal promise to renew your lease does not always guarantee you can stay, but it should not be ignored either.
  • The final answer often depends on your state’s laws. If you live in Philadelphia, Good Cause rules may also affect whether your landlord can refuse to renew your lease.
  • If your landlord agrees to renew your lease, ask for the agreement in writing as soon as possible to avoid misunderstandings later.

What Counts as a Lease Renewal Agreement?

Property manager reviewing a lease renewal agreement with tenants before signing.A lease renewal agreement is an agreement between a landlord and tenant to continue renting the property after the current lease expires. And if you ask any experienced property management company in Philadelphia, this happens by signing a new lease that outlines the rental terms for the next lease period. 

Although landlords and tenants often discuss renewing a lease verbally, those conversations do not always create a legally binding agreement. In most situations, the renewal is considered final only after both parties sign the required paperwork. However, the exact rules can vary depending on your state’s landlord-tenant laws. 

For Philadelphia specifically, landlords may have additional obligations when choosing not to renew a lease. For certain leases, city law requires a valid “good cause” for non-renewal along with proper written notice. Because these local rules can affect a tenant’s rights, it’s important to review both your lease and any city-specific requirements before assuming a verbal agreement is enforceable.

So, where does that leave a verbal promise? Can you rely on it, or is it simply part of the conversation? Let’s look at that next. 

Does a Verbal Promise to Renew a Lease Matter?

Just because a lease renewal wasn’t put in writing doesn’t mean the verbal promise doesn’t matter. And yes, it doesn’t carry as much weight as a signed lease renewal, but it should not always be dismissed. Sometimes, you may find that your state’s laws or the circumstances surrounding the conversation give that verbal promise more importance.

Here’s a simple example. Let’s say your landlord tells you they will renew your lease, so you stop looking for another place to live because you believe you’ll be staying. Later, the landlord changes their mind and says they won’t be renewing your lease after all.

If you have text messages, emails, or other written communications saved, they may help show what your landlord promised previously. And if you live in Philadelphia, that evidence may become even more important if your landlord is required to have a valid good cause for refusing to renew your lease.

Can a Landlord Decide Not to Renew After Discussing It?

Property manager discussing a lease renewal decision with tenants.The answer is yes, in many situations, a landlord can still decide not to renew your lease even after discussing it with you. This may come as a surprise, especially if you relied on that conversation or even have documentation of it.

As we mentioned earlier, a verbal discussion does not always create a legally binding lease renewal. However, if you rent in Philadelphia, your landlord may not be able to simply change their mind because of the good-cause nonrenewal requirement. 

But outside of Philadelphia, the rules can be different. You will find that some states give landlords more freedom to decide whether to renew a lease, and in most cases, the final decision is up to the landlord.

So, if your landlord refuses to renew the lease even after agreeing verbally, don’t automatically assume they are breaking any law. You need to check what the laws in your state say, and then from there you’ll have a better idea of your rights and whether it’s time to start looking for your next home.

Why Might a Landlord Delay a Renewal Decision?

We said that the landlord can decide not to renew the lease, but what could be the reason? Let’s look at that next: 

Reason

What It Could Mean

Reviewing your tenancy The landlord may be looking at your payment history, lease compliance, or maintenance issues before deciding whether to renew.
Property renovations The landlord may be planning repairs, upgrades, or remodeling that require the property to be vacant.
Selling the property Some landlords delay renewals while deciding whether to sell the rental.
Waiting for market conditions The landlord may be reviewing local rental prices before deciding whether to offer a new lease or adjust the rent.
Personal plans The owner may be considering moving into the property or allowing a family member to live there.
Still deciding whether to renew In some cases, the landlord simply hasn’t made a final decision yet and needs more time before sending a renewal offer or notice.

What Should Tenants Do If They Have Not Received a Renewal Agreement?

If your lease is close to expiring and you still haven’t received a renewal agreement, don’t assume everything is fine. Reach out to your landlord or property manager and ask whether they plan to renew the lease. It’s always better to have the conversation early rather than waiting until the last minute.

If your landlord verbally agreed to renew your lease, ask them to put the agreement in writing. A written renewal helps avoid misunderstandings and gives both of you a clear record of what was agreed.

And if you live in Philadelphia, you should also check whether your rental is covered by the city’s Good Cause protections, as these rules may affect when a landlord can refuse to renew a lease.

FAQs About Lease Renewal Agreements

Let’s now address some of the frequently asked questions. Here are some of the questions we see from tenants: 

Can a landlord change their mind after agreeing to renew a lease?

Yes, in some situations. Whether they can legally do so depends on your state’s laws, whether the agreement was in writing, and, in some areas like Philadelphia, whether the landlord must have good cause for refusing to renew.

Is a verbal lease renewal legally binding?

It can be, but not always. A verbal agreement may have legal significance depending on the circumstances and applicable laws. A written lease renewal generally provides much stronger protection.

Can I stay in the property if I have never received a renewal agreement?

That depends on your lease and your state’s landlord-tenant laws. In some cases, the tenancy may continue on a month-to-month basis, while in others, you may be required to move out once the lease expires.

What should I do if my landlord verbally agreed to renew my lease?

Ask them to put the agreement in writing as soon as possible. If they later change their mind, keep any emails, text messages, or other evidence of your conversations and review the laws that apply where you live.

Does Philadelphia require landlords to have a reason for not renewing a lease?

For certain rental properties, Philadelphia’s Good Cause protections require landlords to have a valid reason for refusing to renew a lease and to provide proper notice. However, these rules do not apply to every rental property.

Are You Looking for a Better Rental Experience?

Property manager showing prospective tenants a rental home in Philadelphia.As you can see, a verbal promise to renew a lease does not always guarantee that you can stay in your rental. Yes, you may have leverage if the law supports you, especially for tenants in Philadelphia with good-cause protections. However, the best way to avoid misunderstandings is to communicate early, get renewal agreements in writing, and understand the laws that apply to your situation.

And if you’re looking for a professionally managed rental, Bay Property Management Group can help. Our team works with both landlords and tenants to create clear lease agreements, handle renewals professionally, and make the rental process as smooth as we can. Browse our available rentals or contact us to learn more.