Renewal of Lease Agreement with Agent Involvement

RENEWAL OF LEASE AGREEMENT WITH AGENT INVOLVEMENT

 Summary Where a landlord and a tenant want to extend the duration of their lease agreement over the leased premises, A Renewal of Lease Agreement – with Agent may be signed to renew the lease. Amongst other things, the agreement specifies the new rental amount to be paid by the tenant, and also confirms the landlord’s liability to the agent for commission.

Who should use this Renewal of Lease Agreement – with agent? An estate agent may give the renewal to a property owner and his/her tenant to sign when they agree that the tenant may rent the leased property for a longer period than originally agreed, ie. when the parties agree to renew the lease.

Note: Ensure that you have already signed a Lease Agreement. This Lease Agreement Extension Addendum works with the Agreement of Lease (by renewing and extending the lease agreement already in place), and does not replace the Lease Agreement.

See also: Extension of Lease Agreement – no agent involved

What does the Addendum say? The standard renewal of the lease agreement consists of: Introduction; Extension of the Period of the Lease Agreement; Rental and Costs; General.

What does the template Lease Agreement Extension Addendum look like? The addendum can be printed onto one page.

What do you need to do to use the Lease Agreement Renewal form?

• Complete the relevant details in the template lease renewal form. Ensure that the increased rental is specified.
• Read the document to ensure that it suits your requirements. Make changes as required.
• Ensure that the renewal of lease is signed.

 Also viewed: Termination of Lease notice

Renewal of Lease Agreement Template with an Agent

Introduction

A lease renewal agreement template with an agent involved, also known as a lease renewal agreement, refers to the process of extending a lease term of an original lease (lease extension) between a landlord and a tenant.

The lease renewal agreement template involves the participation of an agent who acts as a mediator and facilitator in the lease renewal process. this in-depth look explores the significance of a lease renewal agreement, the role of an agent, and the key aspects involved in renewing a lease.

There are leases that automatically renews for a set renewal term.

Understanding Lease Renewal and Extension

When a lease term is nearing its expiration, both landlords and tenants may consider renewing the lease. Lease renewal refers to the continuation of the existing lease agreement for an additional period of time.

It allows tenants to continue renting the property and provides landlords with a predictable income stream. Lease extension, on the other hand, refers to prolonging the lease term beyond its original end date. It is important to note the renewal date (effective date or start date) and any increases in monthly rent. Understanding these concepts is essential for both parties involved in the lease renewal process.

If landlord decides not to renew the original lease document after the original lease expires, the landlord will have to provide the tenants advance notice. (prior to the date on which the rental period or lease expires) The minimum required days are generally 90 days.

Parties Involved in a Lease Renewal Agreement

A lease renewal agreement involves several parties: the landlord, the tenant, and an agent. The landlord owns the property and is responsible for providing the terms and conditions of the lease renewal. The tenant is the individual or business renting the property and seeks to continue occupying it.

The agent plays a crucial role in facilitating communication, negotiation, and documentation between the landlord and the tenant. The agent acts as a mediator to ensure a smooth and mutually beneficial lease renewal process for concluding a new lease/ new contract.

The renewal agreement can be used for both residential and commercial property.

The Process of Lease Renewal

The lease renewal process typically starts with the tenant providing proper notice to the landlord expressing their intent to renew the lease past its expiration date noted in the original lease (when the lease ends). T

his notice should be given within a specified timeframe, as mentioned in the original lease agreement or as required by local regulations. Once the notice is received, the landlord and the tenant, along with the agent, can review the original lease agreement and discuss the terms of the renewal. This includes determining the renewal period, rental terms, end date, any rent increases and other fees payable by the tenant, and other provisions to be included in the new lease contract to which the tenant agree.

Negotiating Lease Renewal Terms

During the lease renewal process, negotiations may take place between the landlord, tenant, and agent. These negotiations cover various aspects such as rent increase, lease period, and additional provisions. The goal is to reach a mutually agreed-upon renewal agreement that satisfies the interests of both parties. The agent plays a crucial role in facilitating these negotiations, ensuring effective communication, and helping to address any concerns or issues raised by either the landlord or the tenant.

Executing the Lease Renewal Agreement

Once the lease renewal terms are agreed upon, the next step is to document the lease renewal agreement. This involves preparing a new lease agreement or an addendum to the existing lease (also known as the original lease or current lease), which incorporates the agreed-upon terms as well as the same terms that were not changed in the original lease or current lease.

The lease renewal agreement should clearly state the renewal period, rental amount, security deposit and whether any additional security deposit is to be paid under the renewal agreement, commencement date when the agreement between the landlord and tenant is of full force, square footage of the property up for rent renewal, lease terms of the new agreement, any changes to the original contract, the end dates of the lease renewal agreement and any new provisions that have been mutually agreed upon within the renewal agreement.

Both the landlord and tenant will need to sign the new lease contract, as well as any other party involved in the contract.

It is important for both the landlord and tenant to carefully review the document before they sign the contract to ensure that all terms are accurately represented at the time they sign.

Conclusion

Renewing a lease agreement with agent involved provides a structured and efficient process for both landlords and tenants. By involving an agent, the lease renewal process becomes smoother, as the agent serves as a neutral intermediary and helps to facilitate effective communication and negotiation. Whether it’s extending the lease term or agreeing upon new provisions, the lease renewal agreement protects the interests of both parties and allows for a seamless continuation of the landlord-tenant relationship.

FAQs (Frequently Asked Questions)

1. Can the lease renewal agreement automatically renew without further action?In some cases, lease renewal agreements may include an automatic renewal clause, which means the lease will renew automatically unless one party provides notice to terminate. However, this varies depending on the terms specified in the original lease agreement and the applicable state laws. It is important to review the lease agreement carefully to understand the renewal provisions.
2. Is it necessary to involve an agent in the lease renewal process?Involving an agent in the lease renewal process can provide numerous benefits. An agent can help facilitate communication, negotiate favorable terms, ensure legal compliance, and assist in documenting the renewal agreement accurately. However, the involvement of an agent is not mandatory, and landlords and tenants can choose to handle the renewal process directly if they prefer.
3. What happens if the parties cannot reach an agreement on the lease renewal terms?If the landlord and tenant cannot reach an agreement on the lease renewal terms, further negotiation or alternative options may be explored. This could include discussing compromises, seeking legal advice, or considering alternative rental options. Ultimately, if an agreement cannot be reached, the lease will expire, and the tenant will need to vacate the property as per the terms of the original lease agreement.
4. Can the landlord increase the rent during the lease renewal?Rent increase during the lease renewal is possible, but it depends on various factors such as local rental market conditions, state laws, and the terms specified in the original lease agreement. If the landlord intends to increase the rent, they should provide proper notice to the tenant, as required by local regulations, and discuss the reasons for the rental increase.
5. What should tenants consider before renewing a lease agreement?Before renewing a lease agreement, tenants should carefully evaluate their current needs and circumstances. They should consider factors such as the rental amount, the condition of the property, any changes in personal or business requirements, and the suitability of the location. It is advisable to review the terms and conditions of the original lease agreement and discuss any concerns or desired changes with the landlord or agent.

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