By signing a rental agreement extension, a tenant avoids becoming a monthly tenant after the lease expires. Typically, without a renewal clause or signing a new lease, a tenant who remains after a lease expires becomes a month-to-month tenant and loses the protection of the terms and rental rate assured in a written rental agreement to cover the lease term.
The right to extend a lease agreement can also be created when the original lease is signed by signing an option to renew the lease at the time the original rental agreement is created. US Legal Forms offers a variety of lease extension agreements. We offer a residential lease extension form specifically designed for each state. We also offer a commercial lease extension or a renewal option that can be used as a lease extension addendum when the original commercial lease is signed. By offering the option to renew or extend lease agreement terms, a prospective tenant may be more likely to sign a rental agreement.
Some basic terms included in a residential lease extension agreement or commercial lease extension agreement are:
- Name of the landlord and address for submitting rent payments.
- The names of the tenant or tenants responsible under the lease agreement.
- A reference to the original lease, with the expiration date of the original lease.
- The agreement that the referenced original lease and its rental terms will be renewed, along with the starting and ending dates of the rental agreement extension.
- Any changes in terms to the original lease, such as a change in rent. The rent amount and payment due date under the residential lease agreement extension or commercial leasehold extension should be clearly defined. Any prorated rent payments due up to the effective date of the extension of lease can be included.
- The dated signatures of the landlord and tenant(s).
There are other terms that may be included in a rental lease extension form. The lease extensions available on the US Legal Forms website can be downloaded in Word format and customized to suit any particular needs in any residential lease extension form or commercial lease extension form.