Free Lease Extension Addendum Template
A lease extension addendum is a contract that further extends the term of an existing lease agreement. The addendum will establish a new lease termination date that both the landlord and tenant agree to.
In addition to extending the length of the term of the original lease, this addendum may also document any changes to the price of rent during the extended lease period. It is common for the original rent amount to differ (and increase) especially if the extension is for a short period. This amount will be stated as part of the addendum. All other conditions from the original lease agreement will remain intact.
The lease extension addendum must be signed by the landlord and tenant. Once signed, the lease extension addendum is added to the current lease and is enforceable by law.
When is a Lease Extension Necessary?
Apart from the obvious situation when lease agreements expire, there are a number of situations that require a lease extension addendum instead of a lease renewal. These are, of course, situational and usually require an agreement to be reached between the landlords and the tenant(s). Common situations include;
- In the case that a tenant(s) have upheld their end of the agreement, including maintaining the place in a satisfactory manner, paid rent on time, and has generally nurtured a good relationship with their landlord, the landlord might want to avoid additional paperwork, bureaucracy, and administrative formalities. Instead, simple revisions can be added to make the process less of a hassle for both the tenant(s) and the landlord.
- Sometimes, the tenant(s) may require a shorter lease. This typically occurs when they are in the process of moving or finding a new property, but may need to extend their existing lease for a shorter period of time, such as a few months. In this case, upon landlord approval, they may sign a lease extension for a period that is much more suited to them, instead of signing a year-long lease extension. These can be monthly extensions, but generally depend on the particulars of the situation and require the landlord and the tenant(s) to reach an agreement and sign an extension based on those terms.
- Keep in mind that without a lease extension, the tenant(s) enter somewhat of an unpredictable situation. Without a lease extension, the tenant(s) that make an agreement with the landlord to stay on a month-to-month basis become what is known as a “holdover” tenant. This puts them at the mercy of the landlord, as he can choose to evict them when he desires. As a result, it gives little legal protection to the tenant(s), which is why a lease extension may be necessary, as well as convenient for short term extensions.
What to Include in a Lease Extension Addendum
A lease extension addendum should include the following:
- Name of the tenant
- Name of the landlord
- Property address
- Date of the addendum
- The effective date of the lease extension
- The end date of the lease extension
- Disclosure of consequences for breaking the lease extension
- Rent amount during the lease extension
- Additional deposit (if applicable) for the lease extension
- Property care during the lease extension period
- Date and signature of the tenant
- Date and signature of the landlord
What’s the difference between a lease renewal and a lease extension?
A lease extension is simply the continuation of an existing lease agreement, usually on a month-to-month basis. A lease renewal is essentially a new lease, and is usually for the same term as the previous lease. The benefits of renewing a lease include the stability of knowing there’s a commitment for the term of the new lease, the savings to the landlord of not having to find and move in a new tenant, and the ability to raise the rent for the new lease.
How to Extend a Lease
If you are looking to extend your lease you will want to follow these steps:
- Review your original lease. Locate your original lease agreement to determine its end-date. Additionally, note any changes to the original lease provisions that you would like to make if extended. The most common change to a lease extension is the rent. Depending on the current economic conditions in the area, either party may ask for it to be lowered or increased.
- Discuss your intentions. Contact the tenant to find out if they intend on extending the lease. And, if they were to extend the tenancy, would it be under the current terms or new terms.
- Send the lease extension addendum. Typically, the landlord will mail or deliver the addendum to the tenant(s). This addendum will be attached to the original lease agreement recording any changes that have been made to it. The remaining portion of the original lease agreement will remain intact.
- Sign the Addendum. If the landlord and tenant agree to the terms of the extension, they will both need to sign and date the addendum.
Frequently Asked Questions!
How is a lease extension different from a lease renewal?
As we mentioned earlier, a lease extension typically revises certain particulars of the contract, but, generally, uses a previous lease agreement and extends it. This allows landlords and tenants to bypass any administrative formalities or bureaucratic needs, making for a hassle-free process. A renewal, on the other hand, is a totally new lease that will require the signatures of both parties. This needs to be registered again with the authorities and can be a longer, more drawn-out process.
Are tenants allowed to stay after their lease expires?
Some tenants may need to stay for an additional period after their lease expires. These are legally referred to as “holdover” tenants, who may, upon agreement with their landlord, stay on a month-to-month basis without any legal documentation. This, however, affords them very little legal protection, as they may be forced to evict when the landlord desires. For these reasons, tenants are advised to sign lease extensions even for short term extensions.
Are there any alternatives to a lease extension addendum?
In some cases, tenants may need to stay in the domicile for an unknown period of time or extend their stay for just a few months. In such cases, they can also sign a month-to-month rental agreement. These typically do not establish a start or end date. Instead, they require the landlord or the tenant to provide one month’s notification in advance when they decide to vacate the premises/evict the tenant. Essentially, such an agreement allows both parties to terminate the agreement on a monthly basis.