A lease extension addendum is an agreement that further extends your current lease contract. Moreover, the addendum makes a new lease termination date on which landlord and tenant agree. In Addition, this lease agreement make changes in the terms and conditions. Further, there is a change in the price of the rent during the extended period. It is a common practice to increase the original rent especially if it’s for a short duration. This amount will use as a part of the addendum. All other terms in the original agreement will remain intact.
There is a signature of the landlord and the renter. After signature, this adds to the original current lease and is enforceable by law.
In what sense does a lease extension addendum exist?
A lease extension is a lease agreement that increases the terms and conditions of the current contract. Moreover, in this document, there is a change in the price of the rent amount. Further, it ensures the increase of amount if it’s for a short duration. The addendum ensures that the new termination date is agreed upon between the landlord and the tenant.
Similarly, mention the increased amount in the current lease. However, the other terms & condition will remain as it is. The landlord and the occupant must sign the extension addendum. After affixing it attach this document with the original current lease.
Difference Between Lease Extension Addendum & Lease Renewal
Lease extensions and lease renewals allow the tenant(and landlord) to carry on to lease a property. However, if you want to increase your contract you need to check which one is suitable for you. Moreover, it’s important to see how the lease extension or renewal will affect your terms and conditions in the lease contract. In Addition, the renewal and the extension have the same effects with few differences.
A lease extension is the continuance of the original lease contract. The parties to the lease maintain their landlord-tenant relationship elsewhere the expiry of the original term of the lease. Further, new provisions are selected for a newly defined term.
A lease extension addendum uses the change in the amount of rent and the length of the new term with some other modifications. In contrast to a lease renewal, a lease extension continues the original lease without break.
By definition, the lease renewal makes a new contract between the landlord-tenant after the expiry of the original lease. A lease renewal limits the contract and the benefit goes to the landlord and the renter. In the extension, the original agreement continues without any interruption.
If the original lease is going to reassign, the lease renewal does limit the remaining liability of the original tenant to the landlord. Under lease renewal, legal instant in time involved between the expiry of the original lease and the starting of the renewal term.
There are many reasons to adopt extension addendum as compare to lease renewal. There are few points which are explained here:
A tenant that has followed all the original terms of the lease and the landlord who wants to retain them would use the same lease with an extension. As a result, this will bypass the new contract and the saving of fees for both parties.
An occupant needs time to find a new property and complete their move. It does not need a complete year or specific-term lease but several weeks or months. An extension to the lease is better in every aspect as compared to the new lease. In Addition, shorter-term lease extensions are on a month-to-month basis with a higher rent. The one-year extension is cheaper.
You should extend or renew your lease agreement, it should consider carefully. Moreover, you should consider the potential benefits and drawbacks of the lease extension. In Addition, it is important to check for continue that which language, lease the label is used for drafting the document. This will help you to avoid some of the unintentional consequences in finalizing the document.
Lease Extension Agreements:
Lease extension agreements are between the tenant and the landlord. There are free documents available for your use. You can check the language and label it as per your need. You can download it from free websites and software. In Addition, you can customize it as per your requirements.
What to Include Addendum to Lease Extensions?
A lease extension addendum should have the following points:
- Name of the tenant
- Name of the landlord
- Property address
- Addendum Date
- The lease extension effective date
- The end date of the lease delay
- Expose of consequences for breaking the lease
- The amount for rent during the lease
- Any additional deposit (if applicable) for the lease
- Property care during the lease period
- Date and signature of the renter
- Date and signature of the owner(landlord)
Extending a Lease
If you want to increase your lease you need to follow steps:
Review Your Lease:
Find your original contract and check the end date. Moreover, check any changes you want in your original lease and make any extensions. The most common change is the amount of rent. As per economic conditions, either party can ask for a lower and higher rent amount.
Discussion about your Intentions:
Contact the tenant to check the intention for extending the lease. Moreover, if he is willing to extend the tenancy, you should check the terms and conditions. Further, it will remain the same or there is a change.
Addendum to lease extension:
Normally the landlord will email or mail the addendum to the occupant. Moreover, this document will attach with the original lease contract. The changes in the document will be implemented. The original lease agreement will remain the same.
Signature on the Addendum:
Once the landlord and the renter agree to the extension, they will both sign the document with the date.
What is the interaction for extending a lease?
A lease extension form permits you and your tenant to expand a lease. Except if corrected in like manner, different agreements of the current lease will remain. Additionally, you might expand the lease every month alongside leasehold extensions relying upon the ongoing economic conditions.
You can utilize this document to expand a lease that is lapsing so you can hold a tenant. Aside from making a lease extension addendum, here are the means for expanding a lease:
Allude to the existing lease
Find the current lease to check when the lease will end. Typically, the most widely recognized adjustment in an expansion is how much rent your occupant will pay every month. You and your occupant can arrange whether to lower or build the rent for the expansion.
Talk with your tenant
Either party can contact the other to see whether they have any expectation of broadening the lease under new terms or existing ones. You can do this either by email, telephone, or eye to eye.
In some cases, property supervisors send a letter inquiring as to whether they need to remain on the property for a drawn-out timeframe. The letter incorporates the property supervisor’s contact details to make it more straightforward for the tenant to reach them.
Send the addendum
On the off chance that your tenant chooses to remain, you ought to send the addendum to your tenant. You can add this addendum to the existing lease. It might contain changes like the expansion period and another measure of the lease. The remaining portion of the lease continues as before except if you have recorded different changes.
Sign the addendum
After you and your tenant agree on the particulars of the addendum, you can meet in a settled scene to sign the document. You can likewise send the addendum to your tenant through email and request that they append an electronic signature.
Lease Renewal Agreements:
Lease renewal agreements are between the tenant and the landlord. Moreover, these documents are prepared from the scratch. There are free documents available for your use. You can check the language and label it as per your need. You can download it from different websites and it’s free of cost.
A lease extension addendum is an extension of a contract. Moreover, this agreement needs to change after the mutual understanding of the landlord and the tenant. These changes are in the length of the lease agreement as well as in the rent amount of the lease. The remaining lease agreement remains the same. The addendum attaches with the original lease contract. The lease contract agreements, renewal contract forms are available online. You can download it free from the internet. You can use it as per your requirements.