What is one of the benefits of having a renewal option in a lease agreement?

One of the benefits of having a renewal option in a lease agreement is that it secures a rental price for the future. This option provides the tenant with the right to extend the lease for an additional term at a predetermined rental rate, which can be advantageous in a fluctuating real estate market. With a renewal option in place, tenants can avoid potential rent increases that might occur if they were to negotiate a new lease at market rates, thereby ensuring stability in their occupancy costs for the duration of their tenancy. This aspect is particularly valuable to tenants who wish to maintain predictable budgeting for housing or business expenses over time.