Lease Extension Addendum

Overview: Commercial Lease Extension Addendum

Often, businesses (small or large) may need to extend their lease term due to favorable terms, a great location, or for continuity and stability. In such situations, the lease extension addendum comes into play. It is pretty much the same as a regular residential lease extension but is specifically catered to meet the needs of commercial tenants and landlords. 

Why choose a lease addendum extension

The decision to choose a lease extension can be driven by various reasons. Perhaps your tenant has consistently made punctual payments and followed the rules, and you wish to retain them. Or, as a tenant, you may have built a sense of comfort and familiarity with the place and wish to extend your stay. And, in a commercial lease extension addendum, it saves from hassles of relocating the business and also provides continuity.

How to Fill Out a Lease Extension Addendum Template

Knowing how to fill out a lease extension addendum pdf form is crucial, especially as binding agreements are dependent on correct documentation. Here's a straightforward guide to help you fill out this form with accuracy, alleviating the stresses of the legal process.

1. Start by inputting the resident(s)' full legal name(s) on the blank spot under 'Between', and then provide their current address. This includes city, state, and ZIP code.
2. Type the legal name of the landlord under the 'Landlord' section. This name must match the name listed on the original lease agreement. If the property is managed by a property management company, input their legal name.
3. Specify the duration of the lease extension in months. Enter the number of months the lease is being extended. 
4. Indicate the new termination date. This is the date the lease will end as per the extension agreement.
5. Enter the rental amount for the extension period. Details should include the total rent for the lease extension period.
6. Fill in the expected monthly rental rate. This amount must be agreed upon by both parties and should be clearly mentioned.
7. Moving further, add the current date. Enter the date in the format dd/mm/yy.
8. Under the 'Resident' field, each resident should provide their signatures as proof that they agree to the new lease terms. 
9. If making the agreement on behalf of the landlord, include your signature under 'Authorized agent for landlord'. Prior to signing, ensure you have understood all terms and conditions in the lease extension form.
10. After all fields are completed, you may get a copy of your document or print it to get a hard copy. 

What are some points to be careful of?

When dealing with a rental lease extension addendum, here are some aspects to remain cautious about:

• Compatibility with Original Lease: The addendum should be compatible with the original lease. Any changes should be clearly identified and mutually agreed upon by both parties. All other terms and conditions not mentioned in the addendum remain the same as specified in the original lease.
• Define Changes: If there are changes from the original lease, such as rent amount, insurance requirements, or responsibilities for repairs, those changes need to be clearly defined and agreed upon by both parties in the addendum.
• Reliable Witnesses and Consent: Both parties, the lessor and the lessee, should agree to the terms of the Addendum willingly. To ensure the validity of the Addendum, have it signed in the presence of a reliable witness or a notary. 
• Appropriate Date and Time: Be concise about the dates. Clearly state when the extension starts (this is usually when the original lease ends) and when the extended term will conclude.
• Review of Legality: Before signing, have the Lease Extension Addendum reviewed by a legal professional. This ensures that the document abides by all relevant laws and regulations that protect both parties' rights.
• Retention of Copies: Both landlord and tenant should each have a signed copy of the Lease Extension Addendum. This ensures both parties have legal proof of the agreement and can refer to it whenever required.
• State Laws: Understand that rental laws can differ from state to state. Be sure that the lease extension adheres to the laws of the state where the property is located.