As a property owner, after you sign a commercial lease agreement with a tenant, you can change lease terms with a commercial lease amendment. This document can add new items or change existing clauses to fit both parties’ needs. However, an amendment works only if both the landlord and the tenant agree to the changes.
A commercial lease amendment might also be called a commercial lease addendum.
Who should use this form?
Property owners or managers can use a lease amendment to change or add items to the original lease. Creating a simple amendment is often easier than creating a new lease.
You and the tenant should keep copies of this amendment. If your mortgage company needs a copy, you can also give one to your lender.
What to include in a commercial lease amendment
Your commercial lease amendment will explain the changes you wish to make in the original lease agreement. Some lease amendments will include multiple changes, while others alter or add only one provision.
Specifically, the amendment should reference the date when the original document was signed. That way, both parties know which contract the amendment references. It should also state the property address and the contact information for both tenant and landlord.
A commercial lease amendment can change any aspect of the original lease, including:
- New rent payment amounts or due dates
- New lease term
- New rules of occupation
- How parties now handle operating costs
If you're changing a clause or section in the original lease, reference it in the amendment. For instance, you might write, "Clause 4 of the lease is now amended to..." and detail the changes. If you're adding new material to the original lease, you can create new sections or clauses.
Once the landlord has created the final lease amendment, both parties must sign to make it legal. Save a copy of the signed commercial lease amendment in case either the tenant or landlord needs to reference the document in the future.