A Lease Amendment is a written document that details changes or modifications to the terms of a previously executed lease agreement. A Lease Agreement is a contract whereby the owner of residential property, the landlord, agrees to lease or rent the property to a person or persons, the tenant, in exchange for an agreed upon amount of money.
Here are some basic terms to include:
- Landlord: The name and address of the party who owns the property.
- Tenant: The name and address of each tenant leasing the property.
- Property: The address and details of the property being leased.
- Lease Agreement: The name and date of the original agreement.
- Amended Sections: The specific sections of the agreement being changed and how they are being changed.
- Other Terms: A statement that the other terms and conditions of the lease agreement are unchanged and remain in full force and effect.
- Counterparts: Allow the amendment to be executed in counterparts, in case the parties are not in the same location.
- Governing Law: Include the state whose laws will govern the amendment.
- Signatures: All of the parties should sign the amendment.
You sometimes might refer to the amendment as a:
- Amendment to Lease Agreement
- Lease Addendum
- Addendum to Lease Agreement
- Lease Modification Agreement
- Lease Amending Agreement
- Lease Renewal Agreement
- Lease Extension
When Do I Need an Amendment to a Lease Agreement?
Sometimes circumstances in life change, and the agreements we are a party to need to change as well. If both the landlord and the tenant are amenable to the change, a Lease Amendment is a great way to document the change without affecting the rest of the Lease Agreement.
Here are some examples of changes that can be made with this document:
- Renewing or extending the length of the lease
- Increasing or decreasing the monthly rent
- Allowing a pet
- Swapping or substituting tenants
- Adding a guarantor
- Adding a parking space or storage unit to the leased premises
- Requiring the tenant to get renter’s insurance
- Allowing the tenant to construct certain improvements
- Deleting a certain sentence or restriction
Consequences of Not Using a Lease Amendment Form
A Lease Amendment is a handy way to make changes that aren’t complicated and can be documented in a paragraph or two. No matter how good your relationship with your landlord or tenant is, you will want to make sure that any agreed-upon changes are in writing.
If you don’t use a Lease Amendment, you may be stuck with terms to your lease that are unfavorable or aren’t what you and the other party want. Or you will have to go through the time and expense of drafting a new lease agreement, which may leave you subject to the renegotiation of certain provisions that you weren’t anticipating.
Here is a chart of possible consequences a Lease Amendment could help prevent:
| Landlord | Tenant |
|---|---|
| Lost Money -Paid less than agreed upon -Money spent removing unwanted improvements -Cost of de-fleaing property | Lost Money -Sudden increase in rent -Can’t build needed improvements for home office -Charged penalty for having a pet |
| Lost Time -Going to court over lease violations -Renegotiating the full lease agreement -Having to go to the property for inspections | Lost Time -Going to court over lease violations -Renegotiating the full lease agreement -Having to be at home for any inspections |
| Mental Anguish -Not trusting what your tenant tells you -Unable to prove changes your tenant orally agreed to -Anxiety over how the tenant is treating your property | Mental Anguish -Not trusting what your landlord tells you -Unable to prove changes your landlord orally agreed to -Anxiety over possible eviction |