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What is a Lease Addendum?
A Lease Addendum allows you to amend the terms of an existing Tenancy Agreement. Our Lease Addendum template can be used for both Residential Tenancy Agreements and Commercial Lease Agreements in England, Northern Ireland, Scotland, and Wales.
With a Lease Addendum, a landlord and tenant can add new or update existing lease terms without having to terminate their original agreement and create a new one.
A Lease Addendum is also known as a:
- Tenancy addendum
- Lease amendment
- Lease modification agreement
- Residential lease addendum
- Commercial lease addendum
How does a Lease Addendum work?
When a landlord or tenant creates a Lease Addendum, the original tenancy agreement remains in effect with the amendment included as an attachment.
However, in order for a Lease Addendum to be considered legally binding, all parties must consent to the changes by providing their signatures. One party cannot unilaterally make a change because the original tenancy agreement is a legally binding contract that cannot be altered without both parties' approval.
Therefore, during a fixed-term lease, neither party can create a Lease Addendum and demand the other party to consent to the alterations. For example, if a landlord wants to institute stricter quiet hours halfway through a one-year fixed-term tenancy, the tenant has to agree to the change. If the tenant does not agree, the landlord has to wait until the end of the lease term to try enforcing the amendment.
Who should create a Lease Addendum?
Both landlords and tenants can create Lease Addendums. For example, if you are a tenant, a Lease Addendum can help you manage your tenancy. If you want to propose a change in lease terms to your landlord, a Lease Addendum can be a simple and efficient way to present your proposal.
If you are a landlord and you have discussed certain lease changes with your tenant, a Lease Addendum will legally enforce them.
What can you use a Lease Addendum for?
You can use a Lease Amendment to make straightforward amendments to a Tenancy Agreement. For example, you can change:
- The lease length, renewal, or termination clauses
- The rent amount
- The frequency of rent payments
- The party responsible for utilities
- The permissions and responsibilities of each party
You can use a Lease Addendum to add entirely new clauses to an existing Tenancy Agreement instead of making changes to current terms. For example, you can use a Lease Addendum to add clauses that:
- Add another tenant to an existing Tenancy Agreement
- Make the tenant responsible for paying a portion of property taxes
- Allow subletting of the lease agreement
- Allow tenants to have pets
Pet addendums to leases are quite common. A landlord may prohibit pets in their rental property at the beginning of a tenancy but later change their mind. For example, if a quality tenant acquires a quiet, unobtrusive pet, a landlord may rather permit the animal than have a vacant rental.
If a tenant wants to assign the lease to a new tenant with the landlord's permission, a Lease Assignment Agreement is more suitable than a Lease Addendum.
What is included in a Lease Addendum?
Generally, a Lease Addendum should include:
- The names and signatures of the landlord and tenant
- The rental property's address
- The original lease's signing date
- The Lease Addendum's signing date
- The amendments written as one-paragraph clauses
- Witness signatures
How many times can I amend a lease with a Lease Addendum?
Our Lease Addendum template allows you to make up to five amendments. If you have more than five amendments to make, consider terminating the original lease and creating a new residential or commercial lease.
Can you cancel a Lease Addendum?
You can reverse or cancel the amendments in an executed Lease Addendum by creating another addendum that reverts the lease to its original terms. Once you have five amendments to a lease, consider creating a new lease.
