The contract is ending: renew it or sign a new one?
They are not the same and the consequences differ sharply. What each option means for the term, the rent and the deposit.
The agreed term is running out and a decision has to be made. The most frequent confusion is believing it does not matter how it is done.
Extension: the same contract continues
The contract carries on with the same terms and keeps its age. The periods do not restart, the applicable legal framework does not change, and the deposit lodged stays as it is. This is what happens by default when neither party says anything within the set deadlines.
A new contract: everything starts from zero
Signing a new one restarts the periods and applies the rules in force at that moment, which may not be the same as when the first was signed. It can suit both parties, but it is a decision, not a formality: it is worth knowing what is being restarted.
An expensive mistake: signing a new contract purely to raise the rent. It can have effects you were not looking for on terms and obligations. If all you want is to update the price, check first whether the current contract already allows it.
What to do in good time
- Give notice with whatever period the contract and the law require, in writing and with proof of receipt.
- Review the deposit: if the rent changes, the amount lodged with the regional body may need adjusting.
- Check the energy certificate, which expires.
- Update the parties' details if anything has changed.
And a practical consideration: a tenant who pays and looks after the property is more profitable than an aggressive increase that leaves the flat empty for three months. Do that sum before deciding.
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