What Is a Lease Addendum? Here's What You Need to Know

Lease addenda are a regular in the business of renting a property. But they are not always necessary, so you may not have stumbled upon one yet.

So, what exactly is a lease addendum? What needs to be included in it? Who should sign it? And what are the most common types of lease addenda? Let's find out.

What Is a Lease Addendum?

A lease addendum is an extra document, signed by both parties, added to the lease agreement without altering the original contract. Its role is to add more tenancy terms to the initial lease agreement, without altering the original contract. Both the tenant and the landlord need to agree with the terms specified in the lease addendum (the landlord cannot add a lease addendum without the tenant’s consent).

Having the possibility to add a lease addendum makes things so much easier for both the landlord and the tenant because there’s no need to rewrite the entire original lease agreement.

Let's say you, as a tenant, want to get a pet. The landlord doesn’t mind, but there’s no pet policy in the lease agreement. You both meet up, discuss all the terms of keeping a pet on the property, the landlord writes up an addendum, you both sign it, and, finally, you get your pet!

After you both sign the lease addendum, it becomes part of the lease. So, it bears the same weight legally as the original lease agreement.

Here's why lease addenda are incredibly useful:

• They make it easier for the landlord and the tenant to agree on new rules.
• They help both parties avoid misunderstandings or verbal disputes.
• They help both parties keep records organized and legally valid.
• They’re cheaper than rewriting or renewing a lease.
• They help landlords stay compliant when new local laws or safety standards appear.

Lease Addendum vs Lease Clause

A lease addendum is an attachment to the lease agreement. It’s usually added when the landlord and tenant discuss new terms and don’t want to be burdened with rewriting the whole residential lease agreement.

A lease clause is included in the original document and refers to the current terms of the tenancy. For example, the part about who handles maintenance in the original lease agreement is a lease clause.

In other words, lease clauses are part of the original deal and outline the original lease terms. Addenda are added subsequently after you both agree on new terms, which do not alter the core terms (the original lease clauses).

Lease Addendum vs Lease Amendment

Addendum, amendment… The terms sound quite similar, right? Not so fast, though, because they are completely different documents. A lease amendment is drafted when both parties want to change existing terms in the existing rental contract (speaking of which, lease amendments can modify lease clauses). For example, if the tenant needs to go on a payment plan for unpaid rent, a lease amendment might be required.

By comparison, a lease addendum, as mentioned earlier, does not alter any existing lease terms. But, in some cases, both lease addenda and amendments are accepted, such as in the case of rent increase.

Lease Addendum vs Sublease Agreement

Now, a sublease agreement is, just as its name suggests, a new contract signed by the current tenant and the subtenant. The current tenant, who has signed the original agreement, sublets the property to someone else. The current tenant receives rent from the subtenant and then sends the money to the landlord.

In other words, lease addenda and sublease agreements refer to completely different things. Instead, a lease amendment may be required if the tenant wants to sublet the property.

What Needs to Be Included in the Lease Addendum

Lease addenda are legal documents, so they need to be drafted correctly and they need to include all the information that is required to make things as clear and specific as possible.

Lease addenda should include these key elements:

• A clear title
• The effective date
• The full name of the landlord
• The full name of the tenant
• A statement of connection, which includes details about the existing lease agreement the addendum is attached to (e.g., the original lease date, the full rental property address)
• Clear, specific details about the new terms the lease addendum is signed for (e.g., if it’s a pet addendum, it needs to include pet type, name, breed, color, gender, age, weight, and license number, as well as the terms of keeping pets on the property)
• An integration clause, which specifies that the lease addendum is incorporated into the existing lease agreement
• Landlord's signature and landlord's full name
• Tenant’s signature and tenant's full name

Situations in Which a Lease Addendum Might Be Needed

All theoretical details are clear. But when do you actually need a lease addendum incorporated into the existing rental agreement? When are these minor additions required? Let’s see.

Property-Specific Requirements

Let’s say the property you’re renting has a swimming pool. The landlord may choose to draft a lease addendum that mentions clear rules about using the pool: how often you need to clean and sanitize it, who handles repairs and maintenance, etc.

Introducing New Terms

If you, as a tenant, have been having friends or family overnight a lot and the neighbors have complained about, the landlord may want to draft a lease addendum with specific terms about having guests overnight. Or if they’ve discovered a new, more convenient payment method for rent payments, you can both discuss it and, if it works for you, you’ll sign an addendum to a lease for that.

Temporary Changes

If the landlord wants to renovate part of the property or if they need to make repairs that take a long time to complete, they may want both parties to sign a lease addendum that mentions the specific rules that need to be followed during renovations.

Extra Fees or Charges

Here are some extra fees or charges a lease addendum may be required for:

• Parking fees
• Late payment fees
• Utility cost changes
• Landscaping fees

The lease addendum should include everything about these fees: when they are due, when they apply, how they are calculated, and what payment method the tenant should use to pay them.

New Tenant Requests

The tenant can also request a lease addendum. Let's say you want to paint a wall. Or maybe you want to install a ceiling fan. Or maybe you want to keep a small garden of flowering plants. You’ll have to talk to your landlord and, upon mutual agreement, you can sign a lease addendum for these requests.

Most Common Types of Lease Addenda

Essentially, the landlord and the tenant can sign a lease addendum about almost anything. There are countless terms that can be added to the original lease. These are the most common, though.

Pet Addendum

A pet addendum is needed when the tenant wants to keep a pet on the property, just as its name suggests. It needs to include (besides the basic information listed above):

• Pet name
• Pet type
• Pet breed
• Pet color
• Pet gender
• Pet age
• Pet weight
• License number (if any)
• Pet fees (if any)
• Pet deposit (if any)
• Extra rent pay (if any)
• A liability statement indicating that the pet owner is responsible for any damages caused by the pet
• Any additional pet policies and pet rules

Smoking Addendum

A smoking addendum is a document that prohibits smoking on the property. The landlord may ask for it if they’ve recently renovated the property or if other inhabitants of the building have expressed concerns about the smoking habits of the tenant.

A smoking lease addendum must include:

• Who is not allowed to smoke on the property, and what exactly they are not allowed to smoke on the property
• Where the prohibition applies (maybe the landlord agrees that the tenant can smoke outside, so it needs to be specified)
• The consequences of violating the addendum
• Security deposit details (whether it covers repairs for smoke-related damages)

Bed Bug Addendum

The bed bug addendum is meant to provide the tenant with peace of mind that the property is free of bed bugs, while the landlord ensures that the tenant will take necessary action in case they suspect an infestation.

This addendum might be required by law in certain regions, so it’s recommended to check local regulations in this regard.

The bed bug addendum must include:

• A disclosure section that states whether there has or has not been a bed bug infestation history on the property within a certain period of time.
• If there has been an infestation, the addendum must include details of the infestation and how it was treated.
• The responsibilities of the tenant regarding potential bed bug infestations: they need to inform the landlord of any suspicion or evidence of a bed bug infestation; they also need to cooperate with the landlord to eradicate the infestation
• The responsibilities of the landlord: they need to promptly investigate any suspected bed bug activity and take appropriate measures to eliminate the infestation
• Any additional rental terms as agreed by both parties

Mold Addendum

Just like in the case of bed bugs, a mold addendum is meant to provide the tenant with peace of mind that the property is free of mold. Simultaneously, it helps the landlord make sure that the tenant will act responsibly in case of mold growth.

This addendum is usually more common in humid regions or for older homes. It might also be required by law in some states.

A mold addendum must include:

• Whether mold has or has not been previously identified on the property
• If mold has been previously identified on the property, the addendum must include details about the mold growth and how it was removed.
• Landlord’s responsibilities: to address mold issues promptly
• Tenant’s responsibilities: to maintain the property in good condition so as to prevent mold growth and to inform the landlord quickly about any leaks, maintenance issues related to water intrusion, and any mold growth that cannot be removed.
• Any additional terms

Improvements and Modifications Addendum

This addendum grants the tenant the right to alter the rental property. It usually includes a list of permissible alterations and their scope. These alterations may include:

• Cosmetic enhancements
• Structural modifications
• Energy efficiency measures
• Safety enhancements
• Accessibility adjustments

The addendum must also include information about who becomes the owner of the improvements, as well as restoration terms, a clause about compliance with laws, and any other terms that both the landlord and the tenant have agreed on.

Other Types of Lease Addenda

Other common lease addenda besides the ones described above include:

• Early termination addendum
• Lease extension addendum
• Rent amount increase addendum
• Guest or occupancy addendum
• Military lease addendum (which permits military personnel to terminate their lease early with not penalty)
• Crime and drug-free lease addendum
• Month-to-month lease addendum (e.g., when transitioning from a fixed-term lease)
• Landscaping lease addendum (related to maintaining the landscaping and any associated costs)
• Lead paint addendum

For Landlords: Don'ts When Drafting a Lease Addendum

If you've never written a lease addendum, it can be quite difficult to outline one. Your best chance to get it correct and law-compliant is to work with a professional who can advise you on what exactly needs to be included in the addendum. You can also use the free lease addendum templates you can find online to draft your own document.

Here's some piece of advice from us as well:

• DO NOT use unclear and broad terms (e.g., the tenant may have pets, but not specifying what kind of pets, and any other terms of keeping pets on the rental property).
• DO NOT forget to sign the document, both you and the tenant; the addendum is not enforceable if it's not signed by both parties.
• DO NOT draft a lease addendum before confirming that the tenant agrees with all the terms.
• AVOID making just one addendum for multiple topics (one for both mold and bed bug disclosure, for example).
• DO NOT include terms that violate the main lease, local landlord-tenant laws, or local housing laws.
• DO NOT rely on verbal agreements.
• DO NOT forget to check local laws and regulations regarding legally required addenda.

If you want to get this burden off your shoulders (as well as the burden of managing a rental property overall), you can trust Streamline Property Management with your current responsibilities, including drafting lease addenda!

FAQs

Is the lease addendum legally binding?

Yes, the lease addendum is a legally binding document, just like the original contract. It must be signed by both parties.

Should the tenant sign the lease addendum?

Yes, both landlord and tenants should sign the lease addendum, and both should agree to the addendum's terms. Otherwise, it is not enforceable.

What does a lease addendum mean?

A lease addendum is an additional document incorporated into the original lease agreement. It specifies new terms that do not alter the core terms of the original contract. Both the tenant and the landlord can request an addendum.

Can the landlord add a lease addendum without informing the tenant?

No, the landlord cannot add a lease addendum without informing the tenant or without the tenant's consent. To be legally binding, the addendum must be signed by both the landlord and the tenant.

Is an addendum necessary?

An addendum is necessary when the landlord and the tenant agree on new rules. This document does not alter the existing lease agreement, but it bears the same weight legally as the original contract. The addendum becomes an integral part of the primary lease.

Can you terminate an addendum?

An addendum can be terminated if both the landlord and the tenant agree.