Updated August 30, 2023
A lease extension agreement, or ‘lease renewal‘, allows a landlord and tenant to extend a lease agreement to extend beyond its end date. The remaining terms and conditions of the lease will stay the same unless amended accordingly. Depending on economic conditions, the landlord may choose to increase the monthly rent.
How to Extend a Lease (4 steps)
This addendum may be used to extend an expiring lease in order to keep a tenant that is renting commercial or residential property.
2. Approach the Other Party
Contact the other party and ask if they have any intentions of extending the lease under the current or new terms. This can be done by phone or email. Some property managers will send a letter in the mail asking the tenant if they would like to stay on the property for a longer period of time with contact information if they wish to do so.
3. Send the Extension Addendum
The landlord or property manager will send the addendum to the tenant. The addendum is added to the lease that is currently in effect with any changes such as the extension period and the new rent amount. Unless there are other changes listed in the addendum, the remaining portion of the lease will remain intact.