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.
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.
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.
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.
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.
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.
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.
A valid lease renewal agreement must contain at least the following mandatory clauses:
In addition to the above mandatory information, the following information may also be included:
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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Lease Renewal Agreement - FREE - Sample, template
Country: United States