A Property Owner’s Guide to Lease Renewals

As a property owner or operator working with Threshold, it’s important to understand the annual lease renewal process. Leases are typically 12 months in length, and every year, property owners must go through a renewal process to continue renting to tenants with housing vouchers.

This blog will guide you through the steps of renewing a lease, explain how the process differs from the initial lease signing, and provide you with a clear timeline to follow. Here’s what you need to know to complete the renewal process successfully.

Step-by-Step Guide to Lease Renewals

About 100 days before the lease expires, you receive the Request for Lease Renewal form from HOM, Inc. To avoid delays in payment, it’s crucial to complete and return the form as soon as possible. The form asks whether you want to renew the lease or not, and it’s important to act quickly.

Renewing or Not Renewing?

If you decide not to renew the lease, you must provide the tenant with a written 30-day notice to vacate. This notice should be attached to the Request for Lease Renewal form, with the “I do NOT desire to renew the lease” box checked. Be sure to submit this to HOM, Inc. on time to start the move-out process.

If you are renewing the lease, check the “I DO desire to renew the lease” box. You’ll need to complete the following sections of the form:

• New Lease Dates: Fill in the new lease dates. HOM, Inc. leases are dated from the 1st day of the first month until the last day of the 12th month (e.g., May 1, 2025, through April 30, 2026).
• Base Rent & Additional Fees: Specify the base rent and any additional fees that will apply during the new lease term.
• Total Monthly Rent: Calculate and enter the total rent, including base rent and any additional charges.

Utility Responsibilities

In this section, specify whether the owner or the tenant is responsible for various utilities, such as:

• heating
• water heating
• cooling/AC
• water/sewer
• trash
• other miscellaneous electric fees

Renewal Concessions

If you are offering any renewal concessions (e.g., rent discounts or other incentives), note them in the designated section.

Signature and Acknowledgment

Read the disclaimer: “I understand the above information must be approved by HOM, Inc. and a subsequent executed lease matching the approved terms must be submitted 60 days before the end of the current lease.”

Then sign and date the form.

Rent Reasonableness and Approval

One important aspect of the lease renewal process is ensuring that the rent being requested is considered reasonable in the current rental market. Here’s what you need to know:

Rent Approval Process

HOM, Inc. requires that all rent amounts be reasonable based on the market rates for similar properties. To ensure that your rent increase or current rent amount is considered reasonable, you may need to provide comparable rental listings.

Expediting the Process

To speed up approval, it’s helpful to provide three comparable units that have been rented within the past six months. These units should:

• Be the same size (same number of bedrooms and bathrooms),
• Be of the same type,
• Have rental rates equal to or higher than your requested rent.

If your property has 4 or more units, the comparable units should come from the same property.

For more detailed information on rent reasonableness, read our Rent Reasonableness Guide.

Important Note

Currently, HOM, Inc. is not approving rent increases for lease renewals in Maricopa and Pinal Counties. If you are in these counties, be sure to check for updates before proceeding with a rent increase. For more information, visit the HOM, Inc. lease renewal update page at HOM, Inc. Lease Renewals Update.

TPT Tax Update for Arizona Landlords

As of Jan. 1, 2025, Arizona landlords must cease collecting TPT (Transaction Privilege Tax). This means that rent should be reduced by the local TPT rate for all tenants. Make sure to adjust your rent accordingly to reflect this change. Learn more about this update on our Rental Tax Ban page.

Returning the Request for Lease Renewal

After completing the Request for Lease Renewal form, it’s time to submit it to HOM, Inc. Here’s how you can return the form:

• Email: Send the completed Request for Lease Renewal form to your designated Landlord Support Specialist, listed in the RFLR.
• Fax: Fax it to Maritza Garcia, Landlord Support Supervisor, at (602) 265-4680.

It’s important to submit the form as soon as possible to avoid delays in processing.

Landlord Support Assistance

If you have any questions or need assistance with completing the form, your dedicated Landlord Support Specialist is available to help. Every property owner and operator working with Threshold has access to a dedicated support team that can guide you through the renewal process.

If there are any updates to your banking information (e.g., a change in your account or bank), contact your Landlord Support Specialist for guidance on updating these details.

To learn more about the Landlord Support services provided by Threshold, visit our Landlord Support page.

Home Inspections and Housing Quality Standards

One of the key steps in the lease renewal process is ensuring that the property continues to meet housing quality standards. This is an important requirement for all properties participating in the Threshold program to maintain eligibility for housing vouchers.

Annual Inspections

• Scheduled Inspections: Every year, your property must undergo a home inspection to ensure it meets the required housing quality standards. These inspections are typically scheduled by HOM, Inc., and you will receive an email notifying you of the inspection date.
• Preparation for Inspection: The inspection is essential for maintaining a safe and habitable living environment for tenants. It will check the condition of the property, including elements like plumbing, heating, electrical systems, and overall cleanliness.

To ensure your property is ready for inspection, it’s a good idea to review our Housing Quality Standards Checklist in advance. This checklist will give you a clear idea of what will be inspected and what needs to be in place for your property to pass.

If you need assistance scheduling or preparing for your property inspection, your dedicated Landlord Support Specialist is available to guide you. They can help you navigate the inspection process and answer any questions you may have.

Executing the New Lease

After submitting your Request for Lease Renewal and receiving approval from HOM, Inc., the next step is to execute a new lease agreement. This is a standard procedure to formalize the new lease terms for the next 12 months.

Key Details to Include

• Lease Information: Fill in key details like the lease date, full property address, property manager or agent information, and owner details.
• Rental Terms: Ensure the monthly rent, additional fees, and utility responsibilities are accurately reflected in the lease agreement. These should match what was indicated in the Request for Lease Renewal form.
• Lease Dates: Confirm the new lease start and end dates (e.g., May 1, 2025 – April 30, 2026).

Terms

In addition to the basic rental terms, the lease agreement should include the following:

• Payment Due Dates and Late Fees: Clearly state when rent is due and the applicable late fees if payment is not received on time.
• Deposit and Fees: Ensure all deposit amounts and additional fees (if any) are clearly outlined.
• Insurance Information: Include any required insurance coverage for the property or tenants.
• Utilities and Taxes: Double-check that the utilities and tax details match the Request for Lease Renewal form.
• Lease Termination: Include lease termination terms, including what happens at the end of the lease or if the tenant needs to break the lease early.

Signing the Lease

Once the lease terms are confirmed and completed, both the property owner and the tenant will need to sign and date the agreement.

After both parties sign the lease, submit the executed lease to your Landlord Support Supervisor at least 60 days before the end of the current lease to avoid any delays in processing payments.

Ensuring that all details are accurate and match the Request for Lease Renewal form is crucial. Double-checking these elements can help avoid any potential issues later.

Submission and Verification

Once the lease is executed by both the property owner and tenant, the final step in the renewal process is submitting the signed lease to ensure that all documentation is in order.

• Email: Send the signed lease to your Landlord Support Specialist via email. They will direct you to the correct email address.
• Fax: Alternatively, you can fax the executed lease to Maritza Garcia, Landlord Support Supervisor, at (602) 265-4680.

Once the executed lease is submitted, your Landlord Support Specialist will verify that the terms of the lease match the Request for Lease Renewal form. This includes checking rent amounts, utility responsibilities, lease dates, and any other updates to ensure everything is in order.

After the lease is verified and finalized, the payment process will continue as usual. The new lease terms will apply for the next 12-month term, and you’ll continue receiving rent as agreed upon.

If any discrepancies arise, your Landlord Support Specialist will work with you to correct the issue before the lease renewal can be fully processed.

Ongoing Support

If at any point you need additional assistance, don’t hesitate to reach out to your Landlord Support Specialist. They can help you with any aspect of the lease renewal process and provide ongoing support for any other concerns related to your property. If you cannot reach your dedicated Landlord Support Specialist and need immediate assistance, call our 24-hour landlord support hotline at (602) 507-6737.