What does "extending a lease" mean?

Extending a lease refers to the process of negotiating an increase in the length of time that the leasehold agreement will be in effect. This typically involves discussions between the landlord and tenant, often resulting in an addendum to the existing lease or the creation of a new lease agreement that specifies the new duration. This action is pursued when the tenant wants to continue occupying the property beyond the original lease term, thereby maintaining their rights and obligations under the lease for a longer period.

The concept of extending a lease is a common practice in property management, as it allows both the tenant to secure continued use of the property and the landlord to ensure ongoing rental income. It's essential in the context of leasehold management to understand the implications and processes involved in extending a lease to safeguard the interests of both parties involved.