New Lease or Lease Amendment?

Question

I am changing the payment frequency and due dates for a tenant at their request and I am trying to determine if I should use a lease amendment or a new lease. They are currently month to month.

I think the advantage of using a whole new lease is that I have a new standard lease agreement I started using with new tenants, so this tenant would then have the same terms as everyone else going forward. I am not sure if there is a drawback to starting a new lease though, since it seems like that may equate, legally, to them having "moved out" and then move back in.

Any advice would be appreciated. I plan to discuss this with my attorney on Monday.

Kyle Meyers · Answer

I think I have found the best of both worlds. I am drafting an agreement to restate and amend the lease so the agreement with this tenant will be the same as my other tenants and there will be no loss of rights from ending the tenancy and starting a new one.

Here is the link to some information I found on this setup:

http://www.meislik.com/articles/be_careful_new_lease_old_tenant/

Steve Babiak · Answer

Couple a release from the existing lease along with the new lease - that covers you both ways.  Tenant benefits due to payment date being adjusted as they need, in exchange for that you benefit by standardizing your lease terms.

Michael Hamburg · Answer

Thanks Kyle, the link helped us to decide on which path to take.

Joseph Gendron · Answer

add an addendum or rider to the lease

William Sterling · Answer

My vote is for signing a new lease.  Standardize.

Tom Lincoln · Answer

Hi Kyle we have three rentals.  We typically write a new lease since the terms have changed.  It is up to you how you run your business.  It seems to me an ammendment would work as well as long as both parties have the document.  Check with the landlord laws in your state.  They are usually very clear.  Always good to double check with your attorney.  Good for you!

Tod R. · Answer

Hey Kyle.  To my knowledge, this can easily be handled with an amendment.  However, if you prefer to have your new lease in effect, then that would be appropriate too.  I don't know what impact that would have legally as you asked.  Let us know what the legal eagle says for our fyi.

Good thing you have an attorney and are not relying on this amazing reply for your answer...:)

New Lease or Lease Amendment?

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