Commercial and residential property leases are designed to protect the interests of both the landlord and the tenant, and this can make them intricate documents because they must detail all the aspects and requirements of the relationship between the two parties. For this reason, it is a laborious process to redo a commercial lease agreement or residential lease agreement if there are changes or mistakes once it has been signed by all the parties. The easier and more efficient approach is to execute a lease amendment to correct any errors or change any provisions of the lease after it has been signed.
A residential lease amendment or commercial lease amendment can be used to change virtually any provision of the lease agreement as long as both parties agree to the change. A signed lease amendment is preferred to a verbal agreement because it prevents disputes that may arise in the future if one party fails to uphold their end of the verbal agreement. Any aspect of a lease can be amended, including:
There really is no part of the lease that cannot be changed as long as the parties agree.
A lease amendment can also be a vital tool for both a business owner and a landlord if things should go wrong with the initial opening of the business or if things transpire that the parties were not aware of and could not foresee prior to the signing of the lease. Many times, when a business is started, there can be delays if there are problems preparing the space for tenancy.
It is not uncommon for an opening to be pushed back several months to accommodate issues with construction or permits, even though a signed lease agreement is in effect. In this situation, rather than have a tenant possibly walk away from the deal, a landlord can execute a lease amendment that postpones rent until the property is occupied and the business opens. This can also apply if the business is more of a seasonal prospect and is slow during certain times of the year.
A lease amendment can allow for the troubled business to have lower or postponed rents until business picks up. In this way, a landlord can avoid losing a tenant that otherwise has no problem paying rent for most of the year or is merely going through a rough, but temporary, business period.
A commercial or residential lease amendment is a valuable tool that can be used to benefit tenants and landlords when irregular situations arise. There generally are no specific state laws regarding lease amendments other than those governing the original lease agreement that it amends. As long as both parties agree, the lease amendment can be used to modify any aspect of a lease in order to ensure that both parties can continue to act in good faith and honor their agreements.