An Agreement of Extension of Lease is a legally binding document that allows a landlord and tenant to prolong the existing lease agreement beyond its original term. This extension provides continuity for both parties and ensures that the tenant retains the right to occupy the property, while the landlord continues to receive rent.
Key elements of an Agreement of Extension of Lease often include:
1. Identifying the Parties: The document typically begins by identifying the landlord and tenant, along with their contact information.
2. Property Details: The lease extension should specify the property’s address, including any unit or apartment number.
3. Original Lease Details: The extension references the original lease agreement, including its start date, end date, and any specific terms and conditions that will remain unchanged.
4. Extension Term: The document outlines the new term for the extended lease, including the start and end dates. This could be a month-to-month extension or a fixed period, such as another year.
5. Rent Amount: The agreement specifies the rent amount for the extended term and whether any rent increases will apply.
6. Other Terms: Any other terms or conditions, such as maintenance responsibilities, security deposits, or rights of entry, may also be addressed in the agreement.
7. Signatures: Both the landlord and tenant must sign and date the agreement to make it legally binding.
An Agreement of Extension of Lease provides stability and clarity for both parties. It ensures that the tenant can continue to reside in the property, and the landlord can rely on a steady stream of rental income. This document offers a straightforward and formal process for extending the lease and is a common practice in the world of property rentals.