Lease renewal

A lease renewal is carried out when a person or a company, who reside as a lessee in a property require extending their present lease arrangement. When lease renewals are made they usually come with a revision of the payable rent amount and of course, the extended dates of the lease.

Lease renewal agreements are written agreements that specify the extension of a lease period, and also indicate which leased property is to be renewed. Lease renewals also include the names of the landlord and tenant involved in the lease, the renewal price and any other changes there may be from the original lease agreement.

In addition, lease renewal agreements must include information regarding the purpose of drafting the agreement, the background of the people and the property involved in the agreement, the method of scheduling the validity and rent amount and all appropriate legal provisions such as warranties, indemnities and exclusions.

Frame the lease renewal agreement in writing

When a lease term expires, it is important to form a lease renewal agreement in writing. If this is not done, the lease is considered to lapse and continues on a month-to-month tenancy situation. This condition can prove to be undesirable to both the landlord and tenant.

In some cases, without a written lease renewal agreement, the lease may also terminate. This means that for example, if the landlord wants to make changes to the lease conditions or increase the rental amount, this cannot be done till the existing lease expires. It can be done only with the lease renewal agreement.

Use the help of professionals to avoid litigation

To ensure that both parties understand and oblige with the lease renewal agreement, it has to be framed using simple English, be user friendly and have no complexities involved in it. The lease renewal agreement has to be drafted so that it protects the interests of both parties.

In some cases, it may be difficult to draft a lease renewal agreement because of discrepancies between the landlord and tenant. Litigation can often ensue in such situations. In such cases, our property specialists will be able to provide you with the necessary advice on avoiding litigation. We also help you reach a mutually beneficial lease renewal agreement so that both parties benefit from it.