Lease Extension
Candlefocus EditorMost leases are originally set up with specific terms and end dates, and a lease extension helps to continue the arrangement without having to re-negotiate a new lease. A tenant may wish to extend their stay for a variety of reasons, including not being ready to move yet or wanting more time to find a suitable residence. Similarly, a landlord may want to keep an existing tenant if they are reliable and trustworthy and paying rent on time.
For both the tenant and landlord, lease extensions can be a good way to add a cushion of time as they look for new or permanent arrangements. From the tenant's point of view, a lease extension can provide some flexibility and peace of mind, while from the landlord's point of view a leased extension can provide a steady income that is secure and free from risk.
When making a lease extension agreement, both parties should carefully read the lease extension contract, making sure to cover the important details such as timeframes and amendments to the previous agreement. A written agreement should be signed by both parties before the extension can begin.
Lease extensions can also be beneficial from a tax perspective. For example, in some cases, lease extensions may be exempt from certain taxes such as GST (goods & services tax) or stamp duty, depending upon the length of the extension.
All in all, lease extensions can be a great way to extend the life of an existing agreement without having to start from scratch. They are an important tool for both tenants, landlords, and other parties involved, as they provide them with the flexibility to work out the best arrangements for their needs.