An Introduction to Lease Agreement Addendums
A lease agreement addendum is a contract that is signed by a tenant and a property owner to modify or change an existing rental or lease contract. The purpose of this addendum can be for a few reasons, such as making changes to monthly rent, the rental term, whether pets are allowed on the property, or if a smoker can stay at the rental unit. The addendum acts as an amendment or change to the initial lease agreement, and both the tenant and the landlord must agree to the changes in order for the re-written contract to become binding. In most cases , neither the renter nor the property owner can modify the lease agreement on their own. Otherwise, the changes may not be binding.
In most cases, a landlord will want to use an addendum if they want to change or amend the existing lease. This is because it allows for changes without forcing a new contact to replace the previous one. An addendum also provides a written explanation of why the contract was changed. This is important in the event that legal issues arise between the landlord and the tenant. Even though the new contract is a change to the original, it is as legally binding as the first.
Common Situations for an Addendum
An addendum to lease agreement can be necessary in many circumstances. Some of the most common include:
Modification of rent. Rent is perhaps the most obvious modification that a rental agreement might require. When a landlord needs to increase or decrease the rent amount, either during tenancy or upon renewal, an addendum to lease agreement might be used to memorialize these changes.
Maintenance and repair responsibilities. Adding or removing maintenance responsibilities to the lease can also be done via an addendum to lease agreement. If the landlord decides to provide maintenance for an item that was previously the tenant’s responsibility (or vice versa), the two should draft an addendum to the lease agreement clarifying that change.
Extension of the lease term. Sometimes, a landlord will want to extend the lease without modification. In this case, an addendum to lease agreement serves as a shorter lease with no other provisions.
Description of property to remain with unit. In some cases, a landlord may decide to leave appliances or fixtures with the rental home or apartment for the tenant’s use. For example, if a landlord has a dishwasher in place, they may choose to allow the tenants to use it instead of requiring them to provide their own. In such a situation, an addendum to lease agreement notes that the dishwasher will remain in the unit.
Authorization of pets. It’s not uncommon for landlords to prohibit pets for the duration of a lease agreement, but sometimes they decide to allow for such animals. In these cases, an addendum to lease agreement detailing the types of animals permitted on the premises can protect both the tenant and the landlord from liability issues.
There are many scenarios in which an addendum to lease agreement becomes necessary. Literature of these additions to the lease will protect both the landlord and the tenant, helping to avoid conflict and confusion down the line.
Drafting a Good Addendum
Key elements to consider in drafting a lease addendum include:
- The lease and the addendum must be in writing
- The relevant lease terms that are to be changed must be clear
- There must be the mutual agreement of the landlord and the tenant
- The changes should be signed and dated by each party
- The lease provisions that are to be amended must be narrowly narrowed
- The lease must be attached (with the changes in the addendum clearly indicated)
- A detailed description of the property and the obligations that are subject to change
- The amendment should contain all of the representations made by the parties
- The lease must be properly executed and returned to the landlord or the tenant
- The amendment provisions should be dated and numbered sequentially
In leasing, whether as a landlord or tenant, you want to be able to make any changes needed to the lease agreement. Addendums are used to make these changes without having to write a new lease. It is a good idea for both parties to seek the advice of an attorney to review the addendum and the approved changes to the lease agreement.
Example of an Addendum to Lease Agreement
ADDENDUM TO LEASE
THIS ADDENDUM TO LEASE is made this ________ day of ________________, 20____, by and between _______________________________________, (Landlord), whose address is ____________________________________ and ________________________________, (Tenant), whose address is _________________________________________________________.
1) The purpose of this Addendum is to modify the Rental Agreement so that the Parties are in agreement regarding the following items:
a) _______________________________________________________________.
b) _______________________________________________________________.
c) _______________________________________________________________.
d) _______________________________________________________________.
e) _______________________________________________________________.
- Upon signing this Addendum , all of the terms and conditions set forth in the Rental Agreement dated _______________ shall continue in full force and effect, as though set forth in full text herein.
- The terms of the Rental Agreement remain in effect except as expressly modified by this Addendum.
- This Addendum to the Rental Agreement may only be modified, in writing, by a subsequent Addendum or Amendment to the Rental Agreement.
- This Addendum, which forms part of the Rental Agreement, may be signed in counterpart.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Addendum as of the day and year first above written.
_______________________________________ _____________________________
Landlord Tenant
______________________________ ______________________________
Date Date
Legal Issues and Limitations
Legal considerations and compliance for addendum to lease agreement
The key to a valid lease addendum is ensuring that the change or addition is legally acceptable under state laws and complies with any relevant regulations concerning leases of real property. While state law applies to all elements of leasing and renting real property, certain areas of lease addendum requirements are subject to specific state regulation, such as the permissible amount of rent increases, disclosure of lead paint, obligations of landlords and tenants to disclose information other than that covered by state and federal laws, and restrictions on fees. Legal advice should always be sought prior to use of a rent addendum to ensure it is legally enforceable.
Reasonable changes in payment amounts for rent, utilities, pet deposits, and other general provisions of the lease may be drafted and inserted into the new addendum. However, these provisions must comply with the state’s landlord-tenant laws so that they are legal and enforceable. For example, the state laws may limit the extent to which a landlord can raise the rent for an existing tenant. Some states also prohibit a landlord charging fees for certain actions or lack thereof by the tenant, such as failure to pot a letter in the mail within a certain time period or failure to pay rent on time. Certain fees may also be illegal in some states if they are not expressly authorized in the state’s landlord-tenant laws.
Protection against future liabilities is often the primary goal in modifying an existing lease via an addendum. Therefore, it is very important to understand the extent of your rights with regard to lease addendums prior to drafting one. If the modification described in the addendum is not in compliance with state landlord-tenant law, then the lease addendum may not be enforceable and could expose the landlord to potential future liabilities.
How to Execute an Addendum
Just as a good agreement often results in a good relationship, a properly drafted addendum should both clarify any vagueness in the original lease and facilitate communication between a landlord and tenant. However, an ill-conceived addendum will create confusion, frustration and end up causing disagreement rather than settling it. Once a resolution has been made by the landlord and tenant regarding how to modify the original lease, executing the addendum should be done with just as much care as drafting the original agreement.
Negotiation
The process of modifying a lease with an addendum can be a lot more complicated than a party breaching an agreement. Negotiation about the terms of an addendum should be kept the same way as negotiating the original lease; courteous and transparent. How a lease is negotiated sets the tone for the relationship between the landlord and tenant. The easiest way to do this is to be upfront about the reason for the addendum. An addition to a lease agreement should not just be a way to slip in what would have otherwise been discussed and negotiated in the original agreement, but rather to outline something so important that it needs to be a permanent part of the lease.
Writing
Negotiation can sometimes be a way for parties to try to get all of their concerns written down into the language of the addendum. However, how an addendum is written is just as important . Often a good addendum is a result of drafting something that is clear and is specific to the lease. An addendum that is inserted into the lease should apply broadly to the lease, but should also be drafted in a clear manner so that there is no question as to which parts of the lease it applies, and how. It should be noted that important issues that have to do with the alteration of property should be reviewed by an attorney before going through with execution.
Execution
Once the addendum has been negotiated, written up and agreed upon by both parties, it’s time to execute the addendum. While an addendum should still follow some of the same things that an original lease should have, such as being clear and coherent, an addendum should also include a few other parts. An addendum should include a reference to the original lease that it is modifying or adding to. Additionally, it should make clear which specific sections that the addendum is modifying. An addendum can also be used to specify when a change to the original lease is starting, and when it will end. An addendum can even modify or terminate the original lease with the mutual consent of both parties.
Once the addendum has been completed by the parties to the agreement, it should be executed and delivered in the same manner that the original lease was. While the original lease may have been more formal, a less-formal approach (such as emailing out copies of the original lease) may be more practical and make sense.