How to Write a Lease Addendum

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While leases are essential for outlining rental agreements, situations can arise where the terms need to be adjusted. This is where lease addendums come into play. Addendums are documents that allow you to modify specific aspects of your lease agreement with your tenant, ensuring both parties are on the same page about any changes to the original terms.

When do you need a lease addendum?

For example: you and your tenant agree to a deferred rent payment plan for a specific period. A lease addendum ensures this new agreement is legally binding. This document outlines the revised payment plan, specifying the amount the tenant owes and the timeframe for repayment.

Essentially, the addendum acts as an amendment to the original lease, creating a clear and enforceable contract for both parties. It can be included from the outset to address specific situations, or created later with your tenant's agreement to address new circumstances. In either case, both parties need to sign the addendum to make it legally binding.

Lease addendum meaning

  1. Legally Binding Agreement: A lease addendum is a signed document by both landlord and tenant, ensuring both parties are aware of and agree to the changes.
  2. Modifies or Expands Lease: These addendums can alter specific terms of the original lease agreement or provide additional details about rental policies.
  3. Common Use Cases: Landlords typically use addendums to clarify specific policies, outline new agreements (like deferred rent payments), or modify existing terms within the original lease agreement.

Lease addendums are more common than you might think! You've likely encountered them before in the form of pet policies, subletting rules, or outlining pest control responsibilities. But their usefulness extends beyond the expected. As mentioned earlier, unforeseen circumstances like deferred rent payments can also be addressed through a lease addendum. This flexibility ensures your lease agreement remains adaptable to various situations.

How to write an addendum to lease

The content of your lease addendum will vary depending on its purpose. For instance, a pet policy addendum should clearly outline allowed and prohibited animals, any pet fees or related rules, and the consequences for violating these agreements. This ensures both you and your tenant are on the same page regarding pet ownership in the rental property.

In general, things to include in a lease addendum might be:

  1. Your name
  2. The tenant's name
  3. The rental property address
  4. Relevant policy/information (that complies with your state/municipal rental laws)
  5. Consequences for breaking any contract agreements
  6. Space to sign & date for landlord
  7. Space to sign & date for tenant

Just like lease agreements, lease addendums need to comply with local landlord-tenant laws. For your protection and peace of mind, it's crucial to have an attorney review any contracts you sign with your tenants, ensuring they adhere to all legal rental requirements. This small step can save you headaches and potential legal issues down the road.

How to add an addendum to lease

Unlike a quick note, a lease addendum is a serious legal document. Just like the original lease, it deserves careful attention. To ensure compliance with state and federal regulations, including the Fair Housing Act, it's highly recommended to have an attorney review any addendum before you and your tenant sign it. This proactive step can prevent future legal issues and give you peace of mind.

Once you have a lawyer-approved lease addendum signed by your tenant, file it alongside the original lease agreement. This ensures both documents are easily accessible for future reference. Having a clear filing system for all lease-related documents can save you time and hassle if you ever need to revisit the terms of the agreement.

If you use a property management software like CreditLink Secure, rental documents can be easily signed, shared, and stored all within the dashboard so that both parties have easy access to any leases or lease addendums!

Created on: 05/06/24

Author: CreditLink Secure Blog Team

Tags: lease, addendum , amendment , lease agreement , tenant , landlord tenant laws,

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