When you pop the champagne and start using a commercial space, you usually have to sign a lease agreement. But what happens if you are no longer comfortable with the contents of your current lease agreement and need to change the original lease terms 🤓? The answer is simple and straight: make a lease amendment!
A lease amendment grants you the opportunity (as a landlord or tenant) to request a change in terms for your current lease agreement. Whether you’re in a commercial entity or an apartment, a lease amendment agreement can work well for you 👍. Before implementing the amendments, however, the other party needs to agree to the new terms ⚠.
Stop working with an agreement that no longer works for you! In this article, you’ll learn about some of the changes you can make during the commercial lease amendment ✍ and how you can go about implementing them.
5 Changes You Can Make with a Commercial Lease Amendment
With the lease amendment, you can request any changes in your current agreement. Just ensure 👂 that the elements of the lease amendment follow the law!
If you used a forward-thinking lease, such as our residential lease agreement commercial lease agreement, then you can easily amend your lease to account for changes in circumstances. You can make the following five changes during the lease amendment.
1. Extend the Term of Lease
When leasing property, the entire lease contract only lasts for an agreed period of time (say two years). What happens when the lease period is up🙆? Yep, you can request an extension through a lease renewal amendment!
If you run a business in a rented facility and are planning to keep your lease intact, you can request an extension🎚 from your landlord. However, during the amendment, the landlord may also request a certain change in terms😋 and active lease values.
What kinds of changes? Well, if the landlord agrees to the amendment requests, they may also include a clause that demands a change in rent situation (price increase). This may also happen during any future lease amendment for your standalone lease agreement. It might help to have a budget in mind when you approach your landlord.
2. Adjust the Size of the Leased Space
As time⏱ goes by, your preferences for the leased space may change. Maybe your business has grown, and you need more space. Or perhaps you need to scale down to a smaller space due to annual rent increases.
In a lease agreement commercial lease, you can request the landlord to adjust the space allocated in the original lease. You can request this through a lease expansion guidance document rather than creating a separate lease.
Remember, however, that this change request may also lead to a change in the rent price💵. When you request more space, the landlord may decide to increase the charges by a certain percentage in your lease timetable. If you’re concerned about this aspect of lease administration and you know you’re in it for the long haul, you may want to lock into a longer lease (like a 10-year lease term) to avoid future increases.
3. Improve or Modify an Occupied Space
Landlords often make changes and updates to their properties. A good landlord always wants to make the tenant comfortable😎 and keep them from wanting to move to another place, after all.
Either party (tenant or landlord) can initiate this kind of change. With lease modifications, you can modify the rented space in different ways. These include:
- Upgrading paint 🖌 and décor
- Constructing a loading block
- Installing new wiring for internet and telephone📞 connections
- Creating individual offices or cubicles
- Partitioning a larger space
- Making adjustments to accommodate disabled tenants♿
Before making these adjustments or improvements, the landlord and the tenant must agree in lease sections on who:
- Comes up with the new designs 🍥
- Pays for supplies
- Pays workers
You must include these factors in the lease amendment agreement for individual lease contracts before moving forward with any big changes. You must also agree on future rent adjustments through an acceptable policy to both the landlord and tenant.
4. Allow the Tenant to Occupy Adjacent Space
What happens when an adjacent tenant leaves and you want to occupy the space in addition to your current space? You can request a change in lease terms from the lease administrator to cover both spaces! This, of course, implies that you also agree to pay 🤑 for the extra space you want to occupy.
Is the space next to yours still occupied? You can even request to a lease of space for the adjacent space if the current tenant hasn’t yet vacated! Through the lease amendment effective date, you can request that the space gets transferred to you anytime the other adjacent tenant leaves 🗣. This gives you the “right of first refusal to leave.”
5. Change in Lease Terms and Provisions
During the lease amendment, you can also request for a change in various terms and provisions that make up the lease agreement. This may include:
- Change in penalties for not paying rent on time
- Change in landlord or tenant address
- Change in address for remitting lease payments✊
- Change in lease assignment provisions💪
- Change in insurance requirements
- Change in freely provided utilities and those which the tenant must pay for💵
- Change in state law requirements for disclosures
How Can You Make a Lease Amendment Agreement Legally Enforceable?
After crafting🖊 the lease amendment document📋, the first way to make a binding contract entails both parties appending their signatures👌. Ensure that you and the landlord conduct the appending of signatures before a notary public to make it all official.
The notary public must also sign the document and put their stamp on it to make the lease amendment legally enforceable. You can therefore submit your lease for amendment processing.
Get Help with Your Commercial Lease Amendment Today
Making changes to your commercial lease agreement may seem challenging most of the time 😬. You may wonder 🤔 where to get the best help. The answer? You’ve already found it! Book a consultation with us here 👏.
We’ll guide you before you decide on making any change to your original lease agreement. Alternatively, you can purchase💰 this customized lease amendment template to make everything simpler. The best of luck with your lease amendment journey🙏!