Home>Real Estate>

Lease Extension Agreement

Lease Extension Agreement

Utilize our complimentary Lease Extension Agreement template to formally extend the duration of your lease contract beyond its initial expiration date.

A Lease Extension Agreement is a formal document used to prolong the duration of an existing lease beyond its original termination date.

It's important to note that, unlike Lease Renewal Agreements, lease extensions do not introduce new terms or conditions.

For landlords, sending a lease extension agreement can be a way to offer tenants the option of staying in the rental property for an extended period.

Table Of Contents

What is a Lease Extension Agreement?

A Lease Extension Agreement is a legally binding document that allows both a landlord and tenant to prolong a Lease Agreement beyond its initial expiration date.

Typically, the terms and conditions of the original lease remain unchanged, unless the parties involved decide to amend or replace specific portions of the contract.

For instance, a landlord might seek to extend the lease by a couple of months while simultaneously altering the original agreement to reflect an increased monthly rent.

Lease extension agreements are frequently used in situations where landlords and tenants prefer not to negotiate entirely new lease terms upon the initial lease's expiration. Instead, they opt to extend the existing tenancy for a brief period.

These agreements are particularly common when landlords want to avoid committing to another six-month or year-long lease but still aim to keep their property occupied for a shorter term, typically ranging from one to three months.

If you want to make changes to the original agreement use our Lease Amendment Form instead.

Lease Extension Agreements vs. Lease Renewal Agreements: Key Differences

It's important to distinguish between lease extension agreements and lease renewal agreements, as these terms may sound similar but refer to distinct processes.

  1. Lease Extension Agreement: This document extends the duration of an existing lease beyond its original end date. It typically maintains the terms and conditions of the original lease, with the option to make specific modifications. Lease extensions are often for shorter periods, like a few months.
  1. Lease Renewal Agreement: In contrast, a lease renewal agreement involves creating an entirely new lease contract after the initial lease has expired. It may introduce changes to the terms, such as rent adjustments or updated clauses. Lease renewals often cover longer terms, such as another full year.

It's crucial to understand these differences because landlords and tenants may prefer a lease extension when they don't want to commit to a full-term renewal, allowing for more flexibility in their rental arrangements.

When and How to Use a Lease Extension Agreement: Tips for Landlords

A lease extension agreement can be a valuable tool for landlords in specific situations. Here's when and how you should consider using one, along with some helpful tips:

1. Maintain Goodwill: If you have a positive relationship with your tenant and want to extend their stay for a few months after the initial lease ends, a lease extension agreement can create goodwill. This can be particularly helpful during seasons like the holidays, when tenants may find moving inconvenient.

2. Reduce Vacancy: To minimize vacancy periods while searching for a new tenant, consider offering a lease extension to the current occupant. This can be a practical solution if you've had minor issues with the tenant but believe they could improve their behavior.

3. Flexibility with Terms: When using a lease extension agreement, you have the flexibility to adjust specific terms, such as rent or lease duration. This can be useful in accommodating both your needs and the tenant's preferences.

4. Open Communication: Maintain open and clear communication with your tenant. Discuss the possibility of a lease extension well before the current lease expires. This gives both parties time to consider the offer and negotiate terms if necessary.

5. Document Changes: If you decide to modify any terms, ensure that these changes are clearly documented in the lease extension agreement. This includes any adjustments to rent, lease duration, or other provisions.

By using a lease extension agreement strategically and fostering positive communication with your tenants, you can create mutually beneficial arrangements and reduce potential vacancy periods in your rental property.

When Should You Not Use a Lease Extension Agreement?

While lease extension agreements can be beneficial in many situations, there are times when it's best to avoid using them. Here are scenarios where a lease extension may not be the right choice:

1. Persistent Lease Violations: If you have tenants who consistently violate the terms of the lease agreement, such as being chronically late with rent or causing ongoing disturbances, it may not be wise to offer a lease extension. Instead, let the current lease expire and consider finding a more responsible tenant.

2. Property Renovation Plans: When you have plans to renovate the rental property and these renovations would be challenging with the tenant in place, it's generally better to let the lease terminate without an extension. This allows you the necessary vacant period to carry out renovations and enhance the property's value before attracting new tenants.

In these situations, opting for a lease extension agreement may not align with your long-term goals as a landlord. It's essential to assess each circumstance individually and make decisions that are in the best interest of your property and your tenant relationships.

How to Extend a Lease Agreement?

Extending a lease agreement is a straightforward process. Here are the steps to follow:

Step 1: Review the Original Lease
Begin by thoroughly reviewing the original lease agreement that you signed with your tenant. Take note of any specific clauses, terms, or conditions that you wish to modify or keep in place.

Step 2: Contact Your Tenant
Initiate communication with your tenant, either through a phone call or email. Express your interest in extending the lease and discuss the possibility of doing so under either the existing terms or with any proposed changes.

Step 3: Draft the Lease Extension Agreement
If both you and your tenant agree to extend the lease, you'll need to create a lease extension agreement. This document outlines the terms of the extension, including the new end date, any revised clauses, and the signatures of both parties.

Step 4: Send the Agreement for Signatures
Share the lease extension agreement with your tenant for their review and signatures. Ensure that both you and your tenant sign the document to make it legally binding.

Once the lease extension agreement is signed by both parties, the extended lease period becomes effective, and you and your tenant are legally bound by the new terms.

This process allows you to maintain a clear and formal understanding of the extended lease, promoting a positive landlord-tenant relationship while ensuring all contractual aspects are upheld.

How to Draft a Lease Extension Form?

Drafting a lease extension form is a simple process. Here's how you can create one:

Step 1: Obtain a Template
Start by obtaining a lease extension agreement template. You can find free templates online that are customizable to your specific needs. Download the template and open it using a word processing software like Microsoft Word or Adobe PDF.

Step 2: Fill in Landlord and Tenant Details
At the top of the agreement template, provide the following details:

  1. Date: Enter the current date.
  1. Landlord's Information: Include the full legal name and address of the landlord.
  1. Tenant's Information: Enter the full legal name and address of the tenant.

Step 3: Specify Dates and Property Address
Next, provide the relevant dates and property address:

  1. Original Lease Dates: Mention the date when the original lease agreement was initiated and its expiration date. If there have been any lease agreement amendments, include their dates and names.
  1. Property Address: Clearly state the property address, including the street address, city, state, and zip code.

Step 4: Complete the Lease Extension Section
Fill out the lease extension section with the specific terms of the extension. This should include:

  1. Extension Term: Define the length of the lease extension. For instance, specify that the lease will be extended for three months, starting on a particular date and ending on another date (e.g., January 1, 2020, to March 31, 2020).

Step 5: Review and Customize
Review the entire template and make any necessary changes or additions to align it with your requirements. Customize the agreement as needed to address any specific terms or conditions relevant to your situation.

Remember that while a lease extension can provide temporary flexibility if you wish to continue the lease for the same duration as the original agreement, it's advisable to create a lease renewal agreement with your tenant. You can use a step-by-step builder to simplify the lease extension agreement creation process.


What is an extension option on a lease?

An option to renew or extend a lease grants the tenant the choice to continue the lease for an additional defined term. When the tenant exercises this option, they agree to the terms outlined in the option, which may involve specifying the length of the new term, adjusting the rent, or making other agreed-upon modifications to the lease terms.

Can lease period be extended?

To either renew or extend a lease agreement, you have two options:

  1. Renewal within the Original Lease Deed: You can choose to renew the lease agreement by adding an endorsement to the original lease deed, typically on the last page.
  1. Execute a New Lease Deed: Alternatively, you can opt to create an entirely new lease deed to extend the lease for the desired duration.

What is the extension clause in a lease deed?

The Extension Notice serves as a formal request to extend the lease term for the specified period, and this extension is subject to all the terms and conditions outlined in the original lease agreement. The only alteration pertains to the adjustment in the Base Rent, as detailed below. No additional documentation or actions from either party are necessary to effectuate this extension, although either party can request further clarification if needed.

What is the agreement for lease extension?

A residential lease extension agreement is a legal document that extends the duration of an existing residential lease between a landlord and a tenant. It outlines the terms and conditions of the extension, including any changes to the lease terms such as rent adjustments, duration of extension, and any other relevant provisions.

How do I renew my lease?

Renewing your lease typically involves communicating your intention to stay in the rental property for another term with your landlord or property management company. Here are the general steps you can take to renew your lease:

  1. Review your current lease: Familiarize yourself with the terms and conditions of your existing lease agreement. Pay attention to the lease end date and any clauses related to lease renewal or notice requirements.
  2. Initiate communication early: Reach out to your landlord or property manager well in advance of your lease expiration date to express your interest in renewing your lease. Providing early notice helps both parties plan ahead.
  3. Discuss terms: Once you've expressed your intention to renew, discuss any changes or updates to the lease terms. This could include rent adjustments, lease duration, or any other relevant provisions. Be prepared to negotiate if necessary.
  4. Review the lease renewal agreement: Your landlord or property manager may provide you with a lease renewal agreement outlining the terms of the renewed lease. Review the document carefully to ensure you understand and agree to the terms before signing.
  5. Sign the lease renewal agreement: If you're satisfied with the terms of the lease renewal agreement, sign and return it to your landlord or property manager before the deadline specified in the agreement.
  6. Keep a copy for your records: Once the lease renewal agreement is signed by both parties, make sure to keep a copy for your records. This document serves as a legally binding contract governing the terms of your renewed lease.
  7. Plan for the future: With your lease renewed, continue to fulfill your obligations as a tenant, such as paying rent on time and adhering to the terms of the lease agreement. Stay in communication with your landlord or property manager throughout the lease term.

What is an example of a lease extension?

An example of a lease extension might involve a tenant who has been renting a house for a fixed term of one year. As the end of the lease term approaches, the tenant and landlord discuss the possibility of extending the lease agreement for another year.
Here's how the lease extension process might unfold:

  1. Tenant expresses interest: The tenant informs the landlord that they are interested in extending the lease for another year due to their satisfaction with the property and the desire to maintain stability.
  2. Landlord considers the request: The landlord reviews the tenant's request and assesses factors such as the tenant's payment history, compliance with lease terms, and current market conditions.
  3. Negotiation of terms: The landlord and tenant discuss any potential changes to the lease terms, such as rent amount, duration of the extension, or maintenance responsibilities. Both parties may negotiate to reach mutually agreeable terms.
  4. Agreement reached: Once both parties agree on the terms of the lease extension, they document the agreement in writing using a lease extension addendum or a new lease agreement specifying the extended term.
  5. Signing of the extension agreement: The landlord and tenant sign the lease extension agreement, indicating their acceptance of the terms and their commitment to abide by the terms of the extended lease.
  6. Implementation: The lease extension goes into effect on the date specified in the agreement. The tenant continues to occupy the property under the terms outlined in the extension agreement, and the landlord continues to provide the agreed-upon services and maintain the property.

Who pays for lease extension?

The responsibility for paying for a lease extension typically falls on the party who initiates the extension process. In most cases, it is the tenant who seeks to extend the lease, especially in residential lease agreements.

Sample For Lease Extension Agreement

Loading PDF…

Page 1 of

Related Landlords Contracts
Loading PDF…