How to Write a Lease Extension Agreement: Everything You Need to Know

How to Write a Lease Extension Agreement Everything You Need to Know

If you are a landlord, you will need to know how to write a lease extension agreement sooner or later. That’s why it’s essential to know how to write one from scratch. Without a proper lease extension agreement, you and your tenant could find yourselves in hot water due to misunderstandings.

Creating a lease extension agreement is not difficult, but there are certain steps you need to take to ensure that everything is done correctly. In this article, we will provide a guide to writing lease extension agreements and tips for creating one that is fair for both landlords and tenants!


What is a Lease Extension Agreement?

A lease extension agreement is a legally binding contract between a landlord and tenant that extends the lease length beyond its original end date. This document allows a landlord and tenant to extend their Lease for an agreed-upon length of time, typically one to two years. The terms and conditions of the Lease will stay the same unless amended by both parties. 

Depending on the economic conditions, the landlord may increase the monthly rent. Other terms may be added or removed as the landlord and tenant see fit. Therefore, it is important to have a lease extension agreement in writing so there is no confusion about the lease terms or the length of time it will be in effect.


What’s Included in a Lease Extension Agreement?

Lease extensions can apply to commercial or residential real estate properties. It allows tenants to continue occupying the rental unit beyond the Lease’s original end date. A certified lawyer will review this agreement to ensure it’s just, legally binding, and covers all the agreed-upon terms between both parties.

A lease agreement template is a useful tool that covers several different factors that you, as the landlord, may add or remove depending on the situation. These details are some of the most relevant parts to include in a general lease agreement contract.


Part 1: Details Regarding Leased Premises

The first section should identify the leased premises by address. If there is more than one rental unit on the property, each unit should be listed separately. The square footage of the rental unit should also be included in this section.

Include an accurate property description in both rental and commercial lease agreements. That way, there is no confusion about what is being leased. If the property is furnished, that should also be noted in this section.


Part 2: Construction by Landlord

This section explains the landlord’s plans (if any) to make any additional changes or construction to the property. If not, the landlord should explicitly state that they will refrain from making any additions or modifications to the property’s structure. In addition, the time frame for these changes should be included in this section.


Part 3: Construction by Tenant

In this section, the landlord specifies what changes a tenant may make during their lease period. The landlord may also set restrictions on what changes can be made, requiring the tenant to get approval before making any modifications. 

The landlord will also make a note detailing the tenant’s full responsibility for the cost of any improvements and must receive written approval from their landlord before making said improvements.


Part 4: Furnishings, Equipment, Fixtures, Partitions & Machinery

This lease agreement details the types of machinery, equipment, fixtures, and partitions the tenant can install on the leased premises. The landlord should also specify whether the tenant is responsible for the cost of these items and if they became a part of the property upon lease termination.

Landlords and tenants should discuss the following questions before making any changes or improvements to the rental property: Who will own the additions or improvements? And, will they be removed after leaving or staying, regardless of who paid for them?

This part of the agreement not only protects you but also outlines how much your tenant can change in regard to essentials like heat, water, and electricity.


Part 5: Terms and Conditions of Lease Agreement Termination

The lease agreement terms should state exactly what the renter must do at the time of termination. Depending on the provisions of a contract, the move-out date may or may not be included; for example, it is usually stated as month-to-month or has an expiration date.

The Lease’s termination provisions can also specify what property fixtures, equipment, and improvements will be handed over to the landlord.


Part 6: Reservation of Landlord’s Rights

This section of the lease agreement states and explains the landlord’s rights, generally to enter the property, make repairs, and show the unit to prospective tenants. The lease agreement should also specify that these rights are preserved even if the tenant is not given notice ahead of time.


Part 7: Displays by Landlord

A landlord may advertise a property as available for rent and show it to prospective tenants before the end of the current lease agreement. This section will explain how the landlord will define how they display the property for advertising. Furthermore, they will go over if they allow tenants to tour the property and how much notice is given before advertisements are posted.


When Do You Need a Lease Extension Agreement?

If you’re the tenant in a lease agreement about to expire and want to stay in the property for another term, you’ll need to sign a lease extension agreement. Likewise, you’ll need a lease extension agreement if you don’t want to renew your Lease but still stay on the property.

A new lease may come with a 12-month commitment, but you can sign a lease addendum to extend your stay or make it month-to-month.

Lease extensions may also be relevant in the middle of your current lease contract. For instance, you’re already securing a new property. However, if you have a lease with an end date, your Lease may not start before or immediately following the conclusion of that contract. A lease extension agreement could help you keep your housing until your new Lease begins.

For business owners and landlords, a lease extension agreement can give you the option to keep a tenant in their current location for an extended period. This is especially beneficial if you’re not ready or able to lease the property to a new tenant immediately.


How To Write Lease Extension Agreement

If you are in any situations above and need to write a lease extension agreement, here’s everything you need to know.

When drafting a lease extension agreement, it’s important to be specific about the terms. The lease extension should include:

  • The names of the landlord and tenant (as they appear on the original lease agreement)
  • The address of the rental property
  • The date when the lease extension period begins and ends
  • Any changes to the monthly rent price (if applicable)
  • A statement that all other terms and conditions of the original lease agreement remain in effect during the lease extension period.


Once you have all the details of the lease extension agreement ironed out, both parties will need to sign and date the document. After that, keep a copy of the lease extension agreement for your records.


Sample Lease Extension Agreement

To better understand what a lease extension agreement looks like, we’ve included a sample lease extension agreement below. This lease extension agreement is between a landlord and tenant who have agreed to extend the Lease for an additional month, with no changes to the monthly rent price.


Lease Extension Agreement

This lease extension agreement (the “Agreement”) is made and entered into on the date of September 17, 202, by and between:

  • Party A (Landlord): John Doe
  • Party B (Tenant): Jane Smith.


WHEREAS, the Landlord and Tenant are parties to that certain lease agreement dated August 15, 2022 (the “Lease”), for the property located at 123 Main Street, Anytown, USA; and

WHEREAS, the Landlord and Tenant desire to extend the Lease for an additional month on the same terms and conditions as outlined in the Lease;

NOW THEREFORE, for and in consideration of the foregoing premises and other good and valuable considerations, the receipt and legality of which are hereby acknowledged, the parties hereto agree as follows:

The lease extension period shall begin on October 01, 2022, and end on October 31, 2022.

The rent price during the lease extension period shall remain at $250 per month.

All other lease terms and conditions shall remain in full force and effect during the lease extension period.

IN WITNESS WHEREOF, the parties have executed this lease extension agreement as of the date first written above.

Landlord: _____________________________

Tenant: _____________________________


Create a Lease Extension Agreement Template Using DATAMYTE

You won’t know when you will need a lease extension agreement. Fortunately, you can always create templates that will help you save time when you need one.

DATAMYTE and its Digital Clipboard feature a drag-and-drop interface that lets you create lease extension agreement templates that are easy to use and customizable to fit your needs.

With the DataMyte Digital Clipboard, all you need to do is add the relevant lease extension agreement fields from the Digital Clipboard. Once you’ve added all the lease extension agreement fields, you can save the template for future use.

The DataMyte Digital Clipboard makes life easier for you and your team by allowing you to create lease extension agreement templates that can be used repeatedly. Book a demo today and see how much time you can save with the DataMyte Digital Clipboard.



With a lease extension agreement, you and your tenant can officially extend the lease agreement. This document outlines the remaining terms and conditions of the Lease and any new changes, such as an increase in rent. Use the information in this article to learn how to write a lease extension agreement. You can also create templates using DATAMYTE’s Digital Clipboard for maximum convenience. Get started today!



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