Option to extend lease template

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All Major Categories Covered. Landlords are not required to extend or renew a lease without a renewal option outlined in the agreement, so it’s important to include a renewal option if you intend on renewing the lease. Periodic tenancy: Periodic tenancy is the possession of a property with no determined end date. This addendum may be used to extend an expiring lease in order to keep a tenant that is renting commercial or residential property.

Find the original lease and look it over to see when it ends. The most common change in a lease extension is the rent amount that is paid per month. To request a lease extension , submit a formal letter containing all the pertinent details your landlord needs to make a decision. A moderate, landlord-oriented sample option to extend the lease term provision is also included for your convenience. Use Option to Extend (Avoid Option to Renew) There are differences between an “ extension” option and a “renewal” option.

An option to renew creates a new leasehold estate and effectively surrenders the original lease. Can a landlord evict a tenant at the end of lease? Do I have to move by end of lease?

What is a letter of intent to renew a lease? If the expiration of a lease approaches but both parties want to extend the agreement, the landlord has to craft a new lease agreement to replace the old one. Renewing a lease provides the landlord with a stable tenancy, and it provides the tenants with protection from a long-term tenancy compared to an at-will tenancy agreement.

Use this sample lease extension letter as a template for your formal extension letter. When a lease is about to expire, landlords may want the tenant to extend the lease. Tenants may also want to extend the lease.

In either case, a lease extension letter should be written to formally request an extension on the lease. During the extended term, Tenant shall pay Landlord rent of $_____ payable in advance. Landlord hereby grants to Tenant the following option (s) to renew, or extend , the term of the lease agreement referenced above. The first option is for a term beginning on expiration of the original term of the lease and ending _____ year(s) thereafter. NOTICE TO EXERCISE LEASE OPTION Date: _ To: _ Please be advised that the undersigne as Lessee under a certain lease under date of _, 20_, for premises known as _ does hereby exercise its option to extend or renew said lease for the next option period commencing _, 20_.

The bold sections of the template below indicate where to input your custom information, like names, rent price, etc. Dear tenant’s name, Your current lease will expire on mm-dd-yyyy. A landlord may want the tenant to renew the lease because he or she has always paid the rent on time, kept the property in good condition and been good tenants in general.

The lease will usually provide that the new lease will be on the same terms as the existing lease , except that the rent will be reviewed in accordance with the rent review mechanism in the lease. Lease Renewal Template. Real Estate, Landlord Tenant, Estate Planning, Power of Attorney, Affidavits and More! If you are in a hurry in wanting to have a lease extension contract, or if you want to get an idea on what an extension of lease agreement would look like, you do not have to search further.

Just copy the template to your JotForm account and have it in just a few seconds! Customize and download over free corporate resolutions samples. The Renewal Agreement allows the Landlord and Tenant to continue the renting relationship while also giving them the opportunity to make any necessary changes to their original lease , such as new occupants, rules, or payment arrangements.

In a real estate context, options usually involve the right of a tenant to extend or renew the term of a lease or the right of a buyer to purchase certain real property. If the optionee is compelled to exercise the option , then the agreement is not an option at all, but rather a covenant of the party to perform an obligation under the contract. A standard document for use where the tenant is being granted an option to renew the existing lease of the property.

Some lenders will allow for a simple month-to-month extension.