Lease Extension Agreement Template

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Updated Dec 5, 2023
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Lease extension agreements allow landlords and tenants to extend their original lease agreements or rental contracts beyond their ending date. The remaining terms and conditions of the lease will remain unchanged unless amended accordingly. The landlord may decide to raise the rent in response to economic conditions. Fill out this lease extension agreement template on Loio and download a complete PDF document ready for your further steps.
LEASE EXTENSION AGREEMENT

This Lease Extension Agreement (the "Agreement") is entered into on   (the "Effective Date") by and between

 , an individual having their usual place of living at   (the "Landlord"), and

 , an individual having their usual place of living at   (the "Tenant"), collectively referred to as the "Parties" and individually as the "Party". 

 

WHEREAS the Parties are satisfied with the cooperation and have a desire to further amend the Original Lease concluded by the Parties by extending its term;

NOW, THEREFORE, in consideration of the obligations set forth herein and other valuable considerations, the Parties have agreed as follows:

ORIGINAL LEASE
According to the   signed between the Parties on   (the "Original Lease"), the Tenant leases the   located at   (the "Premises"), from   to  . The Parties agreed that the Original Lease shall be extended and amended as follows.

EXTENSION TERMS AND CONDITIONS 

The Original Lease shall be extended for a period of   until   (the "End Date").
The extension term is a period from the Effective Date to the End Date or the termination date.

The lease fee shall be   per month. The Tenant agrees to pay the Landlord the above agreed-upon lease fee per month on the   day of each month ("Due Date").

All payments will be made on or before the Due Date by cash.

All other terms and conditions of the Original Lease shall remain in full force and effect, except as herein modified.

This Agreement shall commence on the Effective Date and shall remain in effect until the End Date unless terminated earlier under the terms of this Agreement or the Original Lease.

Either Party has the right to terminate this Agreement without cause upon   days prior written notice. In addition, either Party may terminate this Agreement immediately upon written notice to the other Party if the other Party becomes insolvent or files for bankruptcy.

Upon termination of this Agreement, the Tenant shall compensate the Landlord for all days of actual use of the Premises. 

This Agreement makes an integral part of and is subject to all of the terms of the Original Lease unless otherwise agreed upon by the Parties to this Agreement. 

AMENDMENTS

This Agreement may only be modified, or any rights under it waived, by a written document signed by both Parties.

BINDING EFFECT

This Agreement shall be binding for the Parties and their respective permitted successors and assigns. 

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Effective Date.

THE LANDLORD

 

Address:  

 

 


__________________________________

(Place for signature)

THE TENANT

 

Address:  

 

 


__________________________________

(Place for signature)

 

Written by Karyna Pukaniuk - Reviewed by Kateryna Adkham

Template Description

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Paper titled "Lease Extension Agreement"; calendar; a woman giving keys to the other who is standing near suitcases

If you have experience with either renting a property or leasing one out, you’re definitely familiar with standard lease agreements. When the pre-existing lease is going to expire, a lease extension agreement can help you prolong the lease terms.  

If both parties wish to continue with their current arrangement, they can add a lease extension addendum to the original contract. By using a template in these situations, you can ensure that all of your rights are protected.

When to Use a Lease Extension Agreement

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If you enjoy living in your apartment but don't want to renew your lease entirely, you can ask for a residential lease extension. This allows for more flexibility and opportunities to renew the rental agreement. For example, you might continue your rent on a month-by-month basis.  

Alternatively, if you are a business owner, you may want to enter into a commercial lease extension. This is usually the case if you’re in the process of moving to new premises but want to safeguard yourself against heavy profit losses. Through the extension of your lease agreement, you can keep your operations going until you’re fully ready to relocate.  

Parties of the Lease Extension Agreement

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  • Landlord — The landlord owns and leases out their property to the tenant. They usually initiate and draft the contract, whether it's commercial lease extension or extension of residential lease; and     
  • Tenant — The tenant rents the landlord's property for personal or professional use. They’re allowed to negotiate the new terms of the lease extension agreement.

Key Terms

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  • Lease term: This outlines when your original lease ends and when the extension begins; 
  • Security deposit: In the lease extension addendum, you can address whether to adjust the security deposit, keep it the same, or replace it altogether; 
  • Rent amount: This term explains how much the tenant pays under the new terms;
  • Utilities and services: These include water, internet, or electricity and the responsible party all mentioned in the lease extension form; and  
  • Termination clause: This section outlines which circumstances would allow the tenant or landlord to end the commercial or residential lease extension agreement.

How to Write a Lease Extension Agreement

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Lease Extension Agreement

If you want to keep an existing tenant, follow these three steps to extend their lease. You might also consider using a lease extension agreement template from Loio; simply tweak the finer details to make sure they fit your individual needs and download a complete lease extension agreement pdf. 

1. Review the original lease

Begin by reviewing the initial lease agreement between yourself and the tenant. When you have checked the terms and conditions, you can determine what areas you want to change or keep the same for ​​your renew rental agreement.

Next, identify the clauses that may impact your lease extension. For example, such provisions state that the tenant needs a three-month warning prior to a rent increase.

Once you have a firm grasp of the facts, you can initiate the conversation by sending your tenant a lease extension letter. This is the first practical step towards negotiation.

Once the tenant receives the filled lease extension template outlining your proposal and suggested terms, they’re then free to raise any disagreements. At this stage, negotiations typically concern how long the new extension period should last and what the new rent will be. 

2. Draft the lease extension form

After sending the proposal letter to your tenant, it’s time for you to begin drafting the new agreement. As the landlord, this is your responsibility. These are the terms to consider when writing the residential lease extension agreement:

  • Identities: The full names and addresses of both yourself, acting as the landlord, and your current tenant

  • Address: The address of the rental property

  • Time period: The dates and duration of both your original lease and the new extension period

  • New conditions: Any changes you make to the original terms, such as an increase in rental price

  • Signatures: Leave space for signatures and dates

3. Review and sign the lease extension template

Before finalizing the rental agreement extension, encourage the tenant to ask questions or raise any concerns. For example, they want to ensure that the new rental price aligns with the current market conditions in the property’s area. 

Insight

This would involve researching what market developments came about after the original lease agreement was signed. This may be a rise in inflation or a luxurious renovation to the property. Once you’re both satisfied, you can sign the extension of lease agreement to make it legally binding.  

By following the steps above, in combination with this Loio printable lease extension agreement, you can make sure that both you and your tenant’s rights are protected. As a result, you, as the landlord, can enjoy the security of avoiding unexpected vacancies.

Meanwhile, the tenant gains the stability of knowing they have a place to live or conduct business. The lease extension addendum builds trust between you both, ensuring a fruitful landlord-tenant relationship. 

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