Lease Renewal Agreement

What is a lease renewal agreement?

A lease renewal agreement is a document used by a landlord and tenant to extend the term of a lease that is about to expire for an additional term.

The renewal agreement allows the landlord and tenant to continue the rental relationship while also giving them the opportunity to make any necessary changes to the original lease, such as adding new occupants, rules, or payment arrangements. Generally, when a lease expires, if the landlord allows the tenant to stay, the lease automatically converts to a month-to-month lease. However, by using a lease renewal agreement, the parties can choose to create another long-term agreement using the same or different terms as the original lease.

This document can be used to renew any type of real estate lease, including a commercial lease, residential lease, or short-term lease.

What is the difference between a lease renewal agreement and a lease amendment agreement?

Though both documents are used in conjunction with leases, they serve different purposes. A lease renewal agreement is used to extend the original lease for a longer period. Though the parties can opt to change some terms of the original lease using this document, most of the original lease is incorporated and the primary purpose is extending the relationship. A lease amendment agreement does not extend the original lease, but instead is focused on changing it. It may be used at any point during the term of the original lease.

Is it mandatory to have a lease renewal agreement?

No, it is not mandatory to have a lease renewal agreement. If a landlord and tenant wish to extend a lease, they could also just create an entirely new lease from scratch. However, it saves a great deal of time to use a lease renewal agreement rather than starting from the beginning.

What are the prerequisites of a lease renewal agreement?

Since this document is used to extend an existing landlord and tenant relationship, there must already be an original lease in place. The original lease contains the complete details of the rental relationship. This document is then used to renew what was already in place.

What can be the duration of a lease renewal agreement?

Though most lease renewals are for a year-long period, there is no minimum or maximum amount of time for which the lease must be renewed.

What should be done once the lease renewal agreement is finished?

Once the parties complete the lease renewal agreement, both the landlord and tenant should sign and date the document. They should each save a copy of the document in the files for reference and in case of future dispute.

Which documents should be attached to the lease renewal agreement?

Since this agreement incorporates the terms of the original lease, instead of restating all the terms of the original lease, that original lease is referenced in this document and should be attached. This way, it can be referenced if and when it is necessary.

What must a lease renewal agreement contain?

A valid lease renewal agreement must contain at least the following mandatory clauses:

• Contact information: The lease renewal agreement should include the contact information of both the landlord and the tenant.
• Premises address: The lease renewal agreement specifies the address of the premises that is being rented.
• Lease length: The lease renewal agreement states how long the lease is being renewed for.
• Important dates: The lease renewal agreement includes all relevant dates, such as the dates the original lease began and ended and the date when the lease extension is due to start.
• Description of rent: The lease renewal agreement describes the amount of rent that will be paid and when/how these payments will occur.

In addition to the above mandatory information, the following information may also be included:

• Lease amendments: The landlord and tenant may choose to use this document to amend any of the clauses from the original lease.

Which laws are applicable to lease renewal agreements?

As with Lease Agreements, Lease Renewal Agreements in the United States are generally subject to the laws of individual states.

The Environmental Protection Agency governs the disclosure of lead-based paint warnings in all rentals in the States. Distinct from that, however, required disclosures and lease terms will be based on the laws of the state, and sometimes county, where the property is located.

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