Amendment to a Lease Agreement: How to Draft It and When a Notice Is Not Sufficient

Quick Overview

An amendment to a lease agreement is appropriate when the tenant and landlord agree to modify the original agreement. The most common changes include extending the lease term, adjusting the rent amount, modifying advance payments, changing the number of occupants in the apartment, or adding rules regarding subletting.

• The amendment must be in writing if it modifies a lease agreement that was originally entered into in writing.
• Both the tenant and the landlord must sign it.
• An amendment to increase the rent is particularly appropriate when both parties agree on the new amount.
• A simple notification is not sufficient when the lease itself is being amended, rather than just the amount of advance payments made separately.
• In the amendment, always specify exactly which provisions of the original lease agreement are being changed and effective from when.

Not sure if your landlord sent you a fair amendment, or do you need to prepare an amendment to the lease agreement as a landlord? Send us the lease agreement and the proposed amendment. We’ll check whether the wording is clear, enforceable, and won’t lead to a dispute later on.

In our experience, the biggest problem is not the amendment itself, but overly general wording. Tenants often sign a document thinking that “the lease is simply being extended,” but the text may also change the rent, advance payments, subletting provisions, or termination rules.

Increasing Advance Payments via an Amendment

One of the typical purposes of an amendment to a lease agreement is to increase advance payments. The owner of an apartment or house naturally has the right to adjust the amount of advance payments at any time during the year, but must provide sufficient advance notice of the change and deliver this information in writing. The following month, advance payments may then be collected at the newly set rate. However, if the tenant’s payment includes not only rent but also all other charges—meaning the tenant pays a single lump sum—then advance payments must be increased specifically through an amendment to the lease agreement. In such a case, a simple notification of the change is not sufficient; the signatures of both parties are required.

Rent Increase via an Amendment

Rent increases may be stipulated directly in the lease agreement, in the sense of establishing a mechanism or procedure for how and when the rent is increased. However, if this is a sudden decision by the landlord, there are several ways to proceed.

A typical procedure given today’s practice of renewing fixed-term leases is to wait until the agreed lease term expires and then negotiate a new lease agreement with a new rent amount. For open-ended leases, the typical procedure is to use an amendment to the lease agreement. Of course, this is also possible for fixed-term leases. In both cases, the documents must be in writing and must be signed by both parties.

Furthermore, regarding apartment leases, the Civil Code distinguishes between situations where a rent increase is agreed upon directly in the contract and situations where the landlord is only proposing one. If the parties have agreed to an annual rent increase, the terms of the lease apply. If not, the landlord may propose an increase in writing, but only under the conditions set forth by law—which include, among other things, comparable local rent levels and the limit on increases over the past three years.

Every word matters when it comes to rent increases. Before signing an amendment, verify that only the rent amount is changing—and not other rights or obligations.

From Legal Practice: Landlord Attempted to Revoke a Previously Valid Contractual Provision in an Addendum

Ms. Heda sent us an amendment to the lease agreement because she was concerned about one specific provision that the landlord had added to it. She was right—it was highly suspicious. Through that clause, the landlord attempted to revoke the consent to sublease that he had previously guaranteed to Ms. Heda and which she had been utilizing.

Subletting would thus constitute a breach of contract, and the landlord could terminate the lease at any time without restriction. Unauthorized subletting is, in fact, considered a gross breach of the lease agreement by law, and the landlord would therefore have free rein to terminate the lease early.

However, following our intervention, the sublease clause remained in the lease agreement, and Ms. Heda was able to continue renting out the apartment without any concerns.

What should you watch out for?

According to the Civil Code, a contract concluded in writing may only be amended in writing. This also applies to apartment leases. An amendment to a lease agreement must therefore be in writing. A handshake or confirmation via text message is not sufficient proof of an agreement.

Number the amendments carefully so that it is clear in retrospect which version of the contract they actually refer to. Always label them as Amendment No. 1, No. 2, and so on. And for your peace of mind, we’d like to add: If you forget to number them, this does not automatically render the amendment invalid.

Do you have an amendment ready but aren’t sure if anything is missing? A lawyer can help you identify even phrasing that seems harmless at first glance but could, in practice, result in a fundamental change to the contract.

Can someone else act on behalf of the landlord?

The parties to the amendment are the same as those who entered into the original lease agreement. However, it’s fine if someone else acts on their behalf each time. For example, if there is a new managing director in the company, he or she signs the amendment to the lease agreement, not the managing director who has already left. The same applies to authorized representatives.

An amendment may also be entered into by the legal successor of an original party, such as the heir to a rented apartment to whom the rights and obligations under the lease have been transferred.

Do you have questions about an amendment to a lease agreement? We’d be happy to advise and assist you!

Summary

An amendment to a lease agreement allows the tenant and landlord to safely modify the original agreement—for example, to extend the lease, adjust the rent amount, change advance payments, or add rules regarding subletting. Any amendment to a lease agreement must be in writing, precise, and signed by both parties. Pay special attention to an amendment increasing the rent, as it may subtly alter other parts of the agreement in addition to specifying the new amount. When drafting an amendment to a lease agreement, always clearly identify the original agreement, the specific provision being amended, the new wording, and the effective date of the change.