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Home Real Estate Documents Lease Extension Agreement

Free Lease Extension Agreement

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

Updated January 24, 2022 | Legally reviewed by Susan Chai, Esq.

A Lease Extension Agreement is a document that extends a lease beyond its initial end date. 

Unlike Lease Renewal Agreements, lease extensions do not create new contracts with new terms. 

Lease extension agreements are also known as:

  • Residential lease extension agreements
  • Commercial lease extension forms
  • Lease extension forms
  • Lease extension letters
  • Rental lease extension forms

As a landlord, you may want to send lease extension agreements to your tenants if you are willing to have them stay in your rental a while longer.

Table of Contents
  • What is a Lease Extension Agreement?
  • How Do You Extend a Lease Agreement?
  • When Should You Use a Lease Extension Agreement?
  • When Should You Not Use a Lease Extension Agreement?
  • How to Write a Lease Extension Form
  • Write Your Lease Extension Agreement
  • Sample Lease Extension Agreement
  • Lease Extension Agreement Example
  • Frequently Asked Questions (FAQs)

What is a Lease Extension Agreement?

A lease extension agreement is a legal document that allows a landlord and tenant to extend a Lease Agreement beyond its initial end date. 

The terms and conditions of the original lease remain the same unless the parties decide to revise or substitute certain parts of the contract.

For example, a landlord may want to extend a lease for two months but change the original agreement to increase the monthly rent.

TIP

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

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 of time.

Many landlords offer short-term lease extension agreements when they do not want to renew the lease for 6 months or a year, but wish to keep their property occupied for one to three months.

Lease Extension Agreements vs. Lease Renewal Agreements

Although they sound similar, a lease extension form is not the same as a lease renewal agreement. 

A lease extension agreement extends an existing lease agreement, while a lease renewal involves creating a new agreement after the original lease expires.

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.

IMPORTANT

Often, landlords find that lease renewals offer more stability for their real estate business because the property owner and tenant commit to a lengthy term, such as ten, eleven, or twelve months.

Keep in mind that there are many instances when a landlord and tenant will agree that being locked into a lease for another full term is not beneficial to either party.

How Do You Extend a Lease Agreement?

To extend a lease agreement, take the following steps:

1. Look at the original lease

Look at the lease agreement you signed with your tenant and review it thoroughly. Note any sections or language you might want to change, such as the rent amount.

2. Contact your tenant

Call or email your tenants, propose a lease extension under existing or new terms (clauses, etc.). 

3. Write and send the lease extension agreement

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

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

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

4. Receive the signed lease extension

After you and the tenant sign the lease extension, the agreement is in effect.

When Should You Use a Lease Extension Agreement?

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

Create Goodwill

First, you may want to use a lease extension agreement when you have a good relationship with your tenant and would like to give them a place to stay for a few months after the original lease expires.

Offering to extend a lease can help your tenant in many ways since locating and moving to a new property can take time, money, and other resources.

For example, you may want to extend a tenant’s lease that expires during the holiday season. Your renter may not want to renew for a full term at that time, but could also find looking for a new rental inconvenient.

TIP

A landlord in this situation can offer a lease extension agreement for a couple of months. This gives the tenant a while to enjoy the holidays without the stress of searching for another rental property.

Reduce Vacancy

You may also want to use a lease extension agreement to reduce vacancy while you search for a better tenant than the one that currently occupies one of your rental units.

Perhaps that tenant has been late on rent a couple of times. Or, maybe you have received a noise complaint or two about a renter.

TIP

Extending your current rental lease agreement with a tenant who has had a few problems can give you more time to find the perfect renter for your property without having a unit sit vacant.

When Should You Not Use a Lease Extension Agreement?

Lease extension agreements 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 rent should 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 to Write a Lease Extension Form

Step 1 – Download

Download a free lease extension agreement template and open it in Word, Adobe PDF, or another word processor. 

lease extension agreement

2. Fill in landlord and tenant details

Fill in the blanks at the top of the agreement for the following:

  • Date
  • Landlord’s full legal name and address
  • Tenant’s full legal name and address

lease extension agreement

3. Enter dates and property address

Enter the date of the original lease agreement and the expiration date. Include the date and name of any Lease Agreement Amendments, if applicable. 

Write in the property address (state address, city, state, zip code).

lease extension agreement

5. Fill out the lease extension section

Fill out the lease extension section.

TIP

A lease extension section of a lease extension agreement form should look something like this:

The term of this Lease Agreement is hereby extended for a period of 3 months beginning on January 1, 2020 and ending on March 31, 2020 (the “Extension Term”).

lease extension agreement

6. Make changes to lease if needed

Look through the rest of the template and see if you would like to add, change, or edit anything.

lease extension agreement

Write Your Lease Extension Agreement

A lease extension can give you and your tenant more time to settle plans. However, a lease extension is not a long-term solution.

If you want your tenant to continue living on your property for the same length of time as your original lease, create a lease renewal agreement with them.

Use our step-by-step builder to start your lease extension agreement process.

Sample Lease Extension Agreement

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

Lease Extension Agreement

downloadable lease extension agreement pdf

 

DOWNLOAD PDF
DOWNLOAD MS WORD

Lease Extension Agreement Example

The following is an example of what a filled-out lease extension agreement looks like:

lease extension agreement example

Frequently Asked Questions (FAQs)

What is the difference between a lease extension and a lease renewal?

A lease renewal involves creating a new rental contract after the original lease has expired. 

In contrast, a lease extension continues the original lease contract, typically for a few months, and may or may not contain any revised or new terms.

Is a lease extension agreement the same as a month-to-month lease agreement?

No, short-term lease extensions are not the same as Month-to-Month Lease Agreements. Short-term lease extensions usually extend all terms of an original lease, whereas month-to-month lease agreements have newly negotiated terms.

 

Related Landlords Documents

  • Lease/Rental Agreement: A lease agreement is a written document that officially recognizes a legally binding relationship between two parties -- a landlord and a tenant.
  • Rental Application: A rental application is a document landlords use to screen prospective tenants.
  • Lease Renewal Agreement: A lease renewal agreement is a written document that extends the term of an existing lease agreement between a landlord and a tenant.
  • Lease Amendment Form: A Lease Amendment is a written document that details changes or modifications to the terms of a previously executed Lease or Rental Agreement.
  • Notice of Rent Increase: A Notice of Rent Increase is a written letter from the Landlord to the Tenant that officially communicates a change in the amount of money due. A Landlord...
  • Pet Addendum to a Lease Agreement: By signing a written Pet Addendum, the Landlord gives permission for the Tenant to have a pet in their home.
  • Smoking Lease Addendum: A No Smoking Addendum is an additional document added to an existing lease or rental agreement. Once signed, the Addendum is incorporated into the original...
  • Eviction Notice: An eviction notice serves as written record that the Landlord properly notified the Tenant of a problem (i.e. lease violation, late rent, lease ended). An...
  • Lease Termination Letter: A lease termination letter is a document created by the landlord or tenant in order to end an existing lease or rental agreement.
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