If you and your tenant are happy with the arrangement and want to keep it going, a lease extension addendum offers a fast, flexible way to extend the current lease without starting from scratch. Instead of drafting a new rental lease agreement, this simple document amends the original lease to reflect a new end date and any updated terms, such as rent amount, notice period, or lease duration.
It’s common to adjust the rent amount during the extension period, especially if it’s a short-term extension. The addendum only changes the terms listed in the document; all other conditions from the original lease remain intact. Once signed by both parties, the lease extension addendum becomes legally enforceable and becomes part of the existing lease agreement.
Whether you’re managing a long-term tenant or just need a few more months before turning over the property, this document helps you avoid gaps in tenancy and cut down on paperwork. In this guide, we’ll explain when to use one, what to include, and how it differs from a lease renewal.
When to Use a Lease Extension Addendum
A lease extension addendum offers a practical way to keep a tenancy going with minimal disruption. Landlords and tenants typically use it when the original lease nears its end, but both want to continue the arrangement under similar terms for a bit longer.
This type of addendum works well in the following scenarios:
- Short-term extensions: If the tenant needs a few extra months before relocating, or if you need time to line up new tenants or schedule renovations, a lease extension bridges the gap without requiring a brand-new contract.
- Long-term tenants: For stable renters you’d like to keep, a lease extension addendum shows flexibility and goodwill while maintaining structure. It’s also an opportunity to adjust rent or update minor terms.
- Market uncertainty: If rental rates are fluctuating or you’re unsure about long-term plans for the property, an extension gives both parties more time to reassess before committing to a complete renewal.
- Seasonal transitions: Property turnovers during the winter or holiday season can be difficult. Extending a lease to end during a more favorable season may make financial and logistical sense.
In each of these cases, an extension addendum helps you maintain continuity, reduce vacancy risk, and formalize the change in writing, without restarting the lease from scratch.
What to Include in a Lease Extension Addendum
A lease extension addendum should be short, clear, and directly tied to the original lease agreement. It updates only the specific terms that are changing and confirms that all other conditions remain in effect.
Here’s what to include:
- Names of the tenant and landlord: List all parties exactly as they appear in the original lease agreement.
- Property address: Include the full rental property address, including the unit number if applicable.
- Date of the addendum: The creation date of the addendum should appear near the top of the document.
- Effective date of the lease extension: Note the date the extension begins; this may be the same day the original lease ends, or a future date.
- New lease end date: Specify the updated termination date for the lease extension.
- Rent amount during the lease extension: State whether the rent will remain the same or change. If it changes, include the new amount and the effective date.
- Additional deposit (if applicable): If you’re collecting an extra deposit during the extension period (standard for short-term or furnished rentals), note the amount and its purpose.
- Property care expectations: If there are any new or continued responsibilities regarding maintenance or cleanliness, clarify them here.
- Consequences of early termination: Clarify the actions taken if either party ends the lease early, including required notice, forfeited deposits, or penalties.
- Statement that all other terms remain in effect: Add a sentence confirming that all original lease terms stay the same unless otherwise noted in the addendum.
- Signatures and dates: Both the landlord and tenant must sign and date the document to make it legally binding.
How a Lease Extension Differs From a Lease Renewal
While both a lease extension and a lease renewal allow the tenant to continue renting the property, they are not the same thing, and the difference matters. Choosing the right approach can affect everything from rent changes to legal obligations and paperwork.
Here’s how they compare:
| Feature | Lease Extension | Lease Renewal |
| What it does | Amends the original lease | Replaces the original lease with a new one |
| Legal effect | Continues the same lease agreement | Creates a brand-new lease agreement |
| Gap in tenancy | No gap, tenancy continues seamlessly | A legal break may exist between leases |
| Best for | Short-term extensions or continuing an existing relationship | Long-term renewal or making significant changes to the terms |
| Administrative work | Minimal — adds to the existing lease | Higher — requires drafting and signing a new lease |
| Effect on original terms | All original terms remain unless updated in the addendum | Landlord and tenant may renegotiate all terms from scratch |
A lease extension is ideal when you want to keep most terms the same and simply extend the duration, especially for short-term or flexible arrangements. It’s also useful when a tenant needs a few more months to move out or when you’d like to avoid the admin burden of writing a new lease.
A lease renewal, on the other hand, is more appropriate when the original lease has expired and both parties want to start fresh. This route could include new terms, updated clauses, or a change in responsibilities. Renewals are standard for multi-year leases or when there’s been a change in tenant status.
Important: Without a lease extension addendum or renewal, a tenant who stays past the original lease end date may become a holdover tenant. In most states, this means the lease converts to a month-to-month tenancy. That can limit your ability to adjust rent or enforce specific terms.
