Present the bill....does that mean collect the money from them before signing the renewal lease OR deduct that amount later after one year from the security deposit? Also, should the renewal contract papers be a copy of the old contract OR it should just be a single paper saying following all the conditions as the old contract??
It does not matter if the tenant pays the charges or you deduct them from the deposit. But, the deposit shortfall must be made up at the signing of the new lease if deductions are made. You really need to start using the LPA lease made available at this site and have your tenant sign it. There will be many things written to your advantage in the lease and it will prevent many unforeseeable problems. If you did not have any problem with the lease you are now using it may be because you were lucky. Simply tell the tenant that he will be signing a new updated lease while explaining that the rent and deposit will remain the same.