Lease Extension Addendum

Use our Lease Extension addendum to extend your lease beyond its original date.

Updated June 17, 2024
Written by Yassin Qanbar | Reviewed by Susan Chai, Esq.

A lease extension addendum is a legal document that extends an existing lease agreement between a landlord and a tenant, and it may modify terms like rent, security deposit, utilities, and other conditions. If the only alteration is to the termination date, all other original lease terms continue unchanged.

Unlike a Lease Renewal with a new lease termination date, a lease addendum adds to the current lease (with negotiable terms) and does not create a new lease agreement with different terms.

As a landlord, you may want to send an extension addendum to your tenants if you are willing to have them stay in your rental beyond the lease’s end date.

• Lease Extension vs. Lease Renewal
• What Happens to the Original Lease?
• When Should You Use a Lease Extension Addendum?
• How Do You Extend a Lease Agreement?
• Lease Extension Addendum Sample
• How to Write a Lease Extension Form
• Frequently Asked Questions (FAQs)

Alternative Form

If you want to change any terms of the original lease in addition to the contract end date, use our Lease Amendment instead.

Lease Extension vs. Lease Renewal

Lease extensions and renewals both enable continued leasing of a property by tenants and landlords. The choice depends on specific needs as they influence the lease differently.

• A lease extension is essentially a continuation of the existing lease, maintaining the same landlord-tenant relationship with potentially minor modifications for a set period. It doesn’t disrupt the original lease’s continuity.
• A lease renewal constitutes a new agreement after the original lease’s expiration. It might alter certain benefits that were maintained during an extension and could change liabilities for the original tenant if the lease was reassigned.

Additionally, lease extensions are usually for an additional few months, while lease renewals tend to be for another full lease term, such as one year.

What Happens If You Don't Extend a Lease?

Without a lease extension addendum, tenants who stay beyond the lease term become holdover tenants, transitioning the lease to a month-to-month arrangement. In this situation, landlords cannot renegotiate the rent amount, and tenants cannot renegotiate terms related to repairs or property conditions.

What Happens to the Original Lease?

By using an extension, the terms and conditions of the original lease remain the same.

Rental lease extension forms are common when landlords and tenants do not want to renegotiate new lease terms at lease expiration but instead want to extend the original tenancy for a short period.

When Should I Send the Extension?

Landlords typically send lease extension forms just before an original lease expires.

When Should You Use a Lease Extension Addendum?

There are a few reasons you should use a simple lease extension:

1. Create Goodwill:
   • Extend goodwill to tenants by allowing them to stay beyond the original lease end, especially beneficial during inconvenient times like the holiday season.
   • Helps tenants save on the cost and effort of finding a new place immediately.
2. Reduce Vacancy:
   • Use lease extensions strategically to minimize vacancy periods while you search for a more suitable tenant.
   • Useful if the current tenant has minor issues (e.g., occasional late payments or noise complaints), but you prefer to keep the unit occupied while looking for a replacement.

When Should You Not Use a Lease Extension?

Lease extension addendums are not always a good idea. You may not want to use a lease extension form if you:

• Have tenants who constantly breach your lease agreement.Bad tenants who consistently breach your lease agreement and are always late on rentshould probably not receive a lease extension. Instead, let the lease expire and look for a more reliable tenant.
• Want to renovate: Since renovation can be challenging if your tenant is living in your property, you should let your lease terminate without extension if you have plans to renovate, thereby adding value to your unit.

After your tenant leaves, you can use the time between renters to renovate and attract higher-paying renters.

How Do You Extend a Lease Agreement?

To extend a lease agreement, take the following steps:

Step 1 – Initiate the Conversation Early

Start discussions with your tenant well before the current lease expires to allow ample time for both parties to consider their options and prepare for negotiations.

Step 2 – Look at the Original Lease

Look at the lease agreement you signed with your tenant and review it thoroughly.

Step 3 – Contact your Tenant

Call or email your tenants and propose a lease extension under existing or new terms (clauses, etc.). You should not modify the terms, only add to them.

Step 4 – Write and Send the Extension

If the tenant wants to extend the lease, discuss and determine the extension term (length of time). Then, write the agreement.

This extends the commencement of the old contract and adds a new lease closing date.

Once you finish writing your lease extension form, send a copy to your tenants for signatures.

Step 5 – Receive the Signed Lease Extension

The agreement is in effect after you and the tenant sign.

Lease Extension Addendum Sample

Below, you can find what a lease extension addendum typically looks like: