Lease Extension Agreement Template

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 Lawrina and download a complete PDF document ready for your further steps.

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

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

• 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

• 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

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 Lawrina; 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

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.

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 Lawrina 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.