Lease Extension Agreement

What is a Lease Extension Agreement?

A Lease Extension Agreement is a legal document that extends the period of an existing lease agreement between a landlord and a tenant. Rather than drawing up an entirely new lease agreement, the parties can agree to extend the existing lease for a specified period under the same, or sometimes updated, terms and conditions.

What are the benefits of creating a Lease Extension Agreement?

1. Continuity and Stability: For tenants who are happy with their current rental situation, a lease extension agreement provides the opportunity to continue living in the same property, offering stability and eliminating the hassle of moving. Landlords benefit by having a reliable tenant who will continue to provide rental income, reducing the potential for vacancy periods.
2. Flexibility: Lease extension agreements can be for any length of time agreed upon by both parties, offering the flexibility to extend the lease for a shorter or longer period, depending on the needs of both parties.
3. Cost Efficiency: Creating a new lease agreement can involve legal fees, time and resources. By extending an existing lease, both parties can save on these costs.
4. Negotiation Opportunity: A lease extension provides an opportunity for both parties to negotiate any necessary updates to the terms of the original lease, such as rent adjustments, responsibility for repairs, or other terms.
5. Legal Protection: The lease extension agreement, like the original lease, offers legal protection to both parties, outlining the responsibilities and obligations of each party.