Lease Amending Agreement: a Guide for Landlords And Tenants

When tenants and landlords enter into a rental agreement, they sign a legally binding contract. What happens if something changes during the lease term? That's when a lease amending agreement comes in.

In this article, we'll cover when to use a lease amendment, what should be in this agreement, and the steps required to put it in place. You'll also learn best practices for managing lease amendments and when to consider a new lease instead.

What is a lease amendment?

A lease amendment is a document that changes part of an existing lease agreement. This allows landlords and tenants to modify specific terms of the agreement without creating an entirely new lease.

Sample lease amendment form

Examples of lease amendments include the following:

• Changing the rent amount: Use an amendment to adjust the monthly rent payment agreed upon in the original lease. For residential properties, this typically occurs at the end of the current lease term. For multi-year commercial leases, rent adjustments can be made mid-lease using an amendment.
• Lease term: This amendment changes the length of the rental agreement. It specifies a new end date for the lease, either later or earlier than originally planned. The amendment also includes any other conditions or rules that need to change because of the new date or early lease termination.
• Adding or removing tenants: Lease agreements include an official list of people living in the rental property. You can use an amendment if the occupants change, such as when roommates switch, a tenant gets married, or someone moves out. This update clarifies who's responsible for paying rent and following the rental terms.
• Allowing pets: When all parties signed the original lease, there may have been a no-pet policy. If this changes and the landlord wants to allow pets, you can use a lease amendment to document these changes.
• Maintenance responsibilities: This amendment changes who is responsible for certain upkeep tasks at the rental property. It might shift duties between the landlord and tenant.
• Security deposit amount: You can use an amendment to change the amount of money held as a security deposit. This often increases along with rent increases. For example, if monthly rent rises from $1000 to $1200, you might increase the security deposit from $1000 to $1200 to match the new monthly rent amount.
• Subletting or subleasing: This amendment allows tenants to rent out all or part of the property to another person. It outlines conditions for subletting or subleasing, such as requiring landlord approval.

Components of a lease amendment form

Lease amendment forms usually include the following:

1. Identification of the original lease
2. Names and contact information of landlord and tenant
3. Property address
4. Date of amendment
5. Specific clauses to modify
6. Details of the changes
7. Confirmation that all other lease terms remain unchanged
8. Signatures of both parties

Steps to modify a lease agreement

If you need to modify a formal agreement using a lease amendment, here are the steps:

• Discuss changes: Before modifying the existing lease agreement, both landlord and tenant should communicate about proposed changes.
• Draft the amendment: The landlord should draft and review the lease amendment agreement. Verify that the changes comply with state and local laws. Also, check that there are no conflicts with the original lease agreement.
• Sign the amendment: Both the landlord and tenant should sign the new lease amendment. If there are any associated fees such as an increase in the security deposit, the landlord should collect them at this time.
• Attach the changes: Keep records of both the original agreement and the new amendment together for your files.

New rental contract vs. lease amendment

Sometimes creating a new rental contract is preferable to a lease amendment. Here are scenarios when a new lease makes sense:

• Lease expiration: If the current lease is nearing its end and the tenant wishes to renew, the landlord usually creates a new lease rather than amend the expiring one.
• Number of previous addenda: If you've already made multiple addenda, creating a new lease can help consolidate all changes and avoid confusion. This can happen in commercial leases that have multi-year terms.
• Change in parties: You should sign a new lease if there's a change in landlord or tenant — for example, if the landlord sells the property.

Landlords often debate this topic and have different perspectives. In a recent Reddit landlord discussion, user Brazerss asked, "When renewing the lease should you send your tenants a new lease or amend existing?"

In response, user Mr-Chewy-Biteums advised, "You write a new lease. The original statement of condition carries over. You don't need to do anything new with regards to that."

Managing leases and amendments

Landlords can use Azibo's property management platform to streamline the lease agreement and amendment process — here's how:

• Lease agreement: Create legally binding, state-specific rental agreements with digital signature capability. This allows you to quickly generate and execute leases, saving time and verifying compliance.
• Document storage: Easily manage changes to the original lease using Azibo's document storage feature. This keeps all information in one place, improving organization and reducing the risk of misplaced documents.

Rental agreement amendment

Lease amendments help landlords and tenants to adapt their agreements to changing circumstances. Whether adjusting rent, modifying lease terms, or updating policies, these documents offer flexibility without the need for an entirely new lease.

Knowing when to use amendments, what to include in them, and how to properly execute them helps both parties keep up-to-date rental agreements.

With proper management and documentation, lease amendments can make sure rental situations remain current and mutually beneficial throughout the lease term.

Lease amending agreement: FAQs

Is a lease modification the same as a lease amendment?

Yes, they are essentially the same, both refer to changes made to the original lease agreement.

What is the difference between lease amendment and extension?

A lease amendment changes terms, while an extension prolongs the lease duration without altering other terms.