A lease extension agreement is a legal document that outlines the terms and conditions under which a tenant can extend the lease on a property. In Ontario, Canada, the rules and regulations governing lease extensions can be quite complex. Therefore, it`s essential to ensure that the agreement is written correctly and meets the legal requirements. In this article, we`ll discuss the basics of lease extension agreements in Ontario.
What is a Lease Extension Agreement?
A lease extension agreement is a contract between the landlord and the tenant that allows the tenant to extend the lease on a property beyond its original expiry date. This agreement can be used for both residential and commercial properties in Ontario.
In general, lease extension agreements are beneficial to both the landlord and the tenant. For the tenant, it allows them to stay in the property for an extended period, providing stability and security. On the other hand, for landlords, it can ensure continued rental income and save the costs of finding new tenants.
What are the Common Terms of a Lease Extension Agreement?
A lease extension agreement in Ontario typically contains the following essential terms:
1. Term: It is the period for which the lease will be extended. This can be for a fixed period or an open-ended one.
2. Rent: The rent can be adjusted in the new lease term. The agreement should specify the amount of rent and any adjustments.
3. Maintenance and repairs: The agreement should specify who will be responsible for maintaining and repairing the property.
4. Termination: The agreement should outline the process for termination of the lease, including notice requirements.
5. Renewal: The lease extension agreement may also include terms for renewal after the extended lease term ends.
How to Extend a Lease in Ontario
Extending a lease requires mutual agreement between the landlord and the tenant. The process can be initiated by either party by sending a notice to the other party expressing their intention to extend the lease.
Once both parties agree to extend the lease, a lease extension agreement can be drafted. It`s highly recommended to seek legal advice to ensure that the agreement meets all legal requirements and adequately protects both parties` interests.
A lease extension agreement is a beneficial option for tenants and landlords in Ontario who want to continue their tenancy beyond the original lease term. The agreement should clearly outline the terms and conditions of the extended lease period and be drafted with the assistance of a legal professional. By following these guidelines, tenants and landlords can ensure that their lease extension agreement is in compliance with all legal requirements and benefits both parties.