A lease renewal looks easy from the outside. The tenant pays on time, nothing's broken, so you send the same paperwork and move on. But the renewal is where owners quietly lose the most money. Some raise rent too hard and lose a good tenant. Others never raise it and drift below market without noticing. If you own a rental here and already built a solid lease agreement around the first term, the renewal is the next place that paperwork has to do its job.

This post covers when to start the conversation, how to pick a number, how timing changes the answer, and when holding rent is the smarter call. Our team has run Denver property management rentals for 15 years, and about 60 properties sit on our books today, averaging around $3,000 a month. The numbers below come from that world, with typical ranges labeled as ranges.

In This Guide

Start the Renewal Conversation 90 to 120 Days Out

Most owners think about renewals when the lease is almost up. That's late. By then the tenant may already be scrolling listings, and your decision gets rushed.

Here's a timeline that works:

1. 120 days out: Pull rent comps and review the tenant's payment and maintenance history.
2. 90 days out: Decide whether you'll raise, hold, or negotiate.
3. Before you send anything: Confirm the current notice rules (more on that below).
4. Offer sent in writing: Give the tenant real time to respond.
5. No answer or a no: Start marketing the unit early instead of scrambling.

We keep lease end dates, rent history, and maintenance records together in DoorLoop, our property management software. Dates don't sneak up on us, and owners can see the same history in their portal.

Renewal dates are easy to forget. A calendar reminder costs nothing.

Check the Market, Not Your Mortgage

Your mortgage payment has nothing to do with what a unit rents for. Comparable units do.

Rents here swung hard after 2020, with sharp jumps followed by softening in some submarkets. An owner who pushed rent at the peak may now sit above market. An owner who froze rent for years may sit well below it. Either way, you want a rent analysis before every renewal, not just at move-in.

Say your tenant pays $2,800 and has gone two years without an increase. Comps for similar units in Washington Park now lease around $3,100. That's a $300 monthly gap, or $3,600 a year. Closing it in one shot with a 10% bump is possible on paper. But delivered late and with no warning, it can push out a reliable tenant, and the turnover can cost more than the raise would have recovered.

Our leasing agent, Gavin Kelly, hosts showings, so we hear in real time what renters react to on price. That's useful, because comps are only as good as the people actually signing leases at those rents. Owners in our Annual Rental Review get a sit-down on rent position and renewal strategy once a year, included with membership at no extra charge.

How Much to Raise Rent

There's no magic number. There is a useful range.

• Hold: Zero increase. Makes sense when the tenant is excellent and you're near market.
• Small step, 3-5%: A common annual increase in a stable market. On a $3,000 rental that's roughly $90 to $150 a month.
• Larger jump, 7-10% or more: Shows up in high-demand years or after real capital improvements, like a renovated kitchen.

Here's our rule of thumb. If the gap to market is bigger than about 5%, consider closing it over two renewals instead of one. A tenant who sees $120 more a month will often stay. A tenant who sees $400 more starts looking at other places.

Rent also has to match what you're giving. If the tenant has waited on repairs, a big increase reads as an insult. Maintenance response under 24 hours is the standard we hold ourselves to, and it makes renewal conversations a lot easier.

Timing Matters as Much as the Number

Demand in this market is seasonal. It generally peaks from about April through August, when job moves, university calendars, and lifestyle changes bunch together. Leases ending then give you more pricing leverage and an easier time filling a vacancy. Leases ending November through January carry more renewal risk and less room to push.

Picture an owner with a townhome near Capitol Hill whose lease ends in December. Pushing a large increase may send the tenant out the door. Now the owner is filling a vacancy in the slowest leasing month of the year, likely offering concessions or a lower rate than the raise would have brought in.

Sometimes the fix is the lease length. A 15 or 16 month renewal can move the next end date into spring, if the tenant agrees.

Tenant Type Changes the Rhythm

Student housing near the University of Denver tends to follow the academic calendar. Professional renters in RiNo, LoHi, or Cherry Creek often expect year-over-year increases tied to market comps. Same city, different renewal cycles.

Know the Notice Rules Before You Send Anything

Colorado has tightened landlord-tenant rules in recent legislative sessions. That includes how much written notice a rent increase needs and when a landlord can decline to renew. We're not going to quote a number here, because the details have shifted and depend on the tenancy. Check the current statute before any notice goes out.

Owners who haven't reviewed their renewal process since about 2022 are the ones most likely to be working off old assumptions. Check that your Denver landlord license is current too, and confirm with the city what it requires.

This is one reason owners hand renewals to us. We keep up with the rule changes so you don't have to.

When Holding Rent Is the Smart Move

Conventional wisdom says raise rent at every renewal. We disagree, with one condition.

Think about a tenant who's been in place three years, pays on time, and treats the unit well. That tenant gives you zero vacancy, zero turnover cleaning, zero leasing fee, and no wear from a move-out. Keeping them $100 below market can be the right financial call.

But make it a decision with real numbers. Picture a landlord who skips the renewal conversation and sends the same lease at the same rent. A year later they're $200 a month below market and can't reprice until the next cycle. That's roughly $2,400 left on the table.

What a Departing Tenant Really Costs

The raise only makes sense next to the cost of losing the tenant. When a good tenant doesn't renew, vacancy cost typically runs about 5% to 8% of annual rent. That covers:

• Lost rent: Every empty week is income you don't get back.
• Turnover work: Cleaning, touch-up paint, and repairs found at move-out.
• Leasing and marketing: Fees and the time it takes to find the next tenant.

On a $3,000 unit that's $36,000 a year in rent, so 5% to 8% lands somewhere around $1,800 to $2,880. A 5% raise brings in about $1,800 a year. If the increase pushes the tenant out, you can spend more than the raise would ever have earned.

Run it both ways before you commit to a number.

Deliver the Offer Like You Want to Keep the Tenant

How you send the renewal matters almost as much as the number. One owner who leased a townhome with us described the process as "very honest and transparent," with "accurate and timely communication." A renewal offer should earn those same two descriptions from your tenant.

A clean process looks like this:

1. Put it in writing: Include the new rent, the new term, and the response date.
2. Explain the number: A line or two about market comps goes a long way.
3. Offer a conversation: Be ready to hear about a repair or a budget concern.
4. Treat every tenant the same: Federal fair housing law covers rent amounts and renewal terms, and a first violation can bring a civil penalty of up to $26,262 in a HUD administrative case.
5. Document everything: Keep the offer, the replies, and the final lease together.

Plenty of tenants have already read a Tenant Rights and resources guide before your notice lands. Write it like they will.

What a Renewal Should Cost You

Renewals take work, and some managers hide the price. Our renewal fee is 10% of one month's rent, disclosed up front and in writing. On a $3,000 rental that's $300. Across the market, renewal fees commonly run from about $50 to $350, and a "free" renewal is usually recovered somewhere else on the fee schedule.

Our flat 10% management fee is all-inclusive. There's no maintenance markup and no per-inspection fee, so the renewal conversation doesn't carry hidden coordination charges. When you compare the best property management companies in Denver, ask each one for the complete fee schedule, every fee on one document. We hand ours over before you ask.

Questions Owners Ask About Renewals

How early should I tell a tenant about a rent increase?

Start planning 90 to 120 days before the lease ends. Written notice has to meet Colorado's current minimum, which has changed recently, so confirm the rule before you send anything and give more time than you think you need.

How much should I raise rent at renewal?

In a stable market, 3% to 5% is common. If you're well under market, consider closing the gap over two renewals so the tenant isn't hit with one big jump.

Should I raise rent on a tenant who's been great?

Often a small increase or a deliberate hold makes sense. A long-term tenant saves you vacancy, turnover costs, and a leasing fee, so compare the raise against those numbers first.

Can I just decline to renew a lease I'm unhappy with?

Don't assume so. Colorado's newer law limits non-renewal in many tenancies, so check the current rules and the exact scope before you decide.

What does a lease renewal cost when a manager handles it?

With us it's 10% of one month's rent, disclosed in writing up front. That's $300 on a $3,000 rental.

If a renewal feels harder than it should, Jenny Usaj and our team are open to a conversation.