How Improvements and Modifications Lease Addendum Works (Free Templates)

Improvements and modifications lease addendum refers to an agreement that exists between a tenant and the landlord that stipulates the extent to which a tenant is allowed to make alterations to the property they have leased. The addendum is usually added to supplement the lease agreement. A new business comes with new changes because of its unique identity. Business logos, features, and physical looks are mostly unique as compared to others, and to maintain the uniqueness, alterations in terms of improvement and modifications of the working area are inevitable. The tenant must therefore abide by the necessary rules related to improving and modifying their premises.

The landlord is normally relieved of the burden of being liable for property damage or injuries to people that might occur during the improvement and modification of the property as the tenant is obligated to obtain the permits and licenses necessary for carrying out the modifications. The tenant and landlord must append their signatures on the addendum, which is then attached to the original lease agreement. Before entering into the agreement, it is crucial for the landlord and tenant to first understand the State Laws applied in governing commercial leases in their respective states.

Improvements and Modifications Lease Addendum is also referred to as Permitted Alterations and Improvements Agreement Lease Addendum.

How it Works

The agreement aims to provide tenants some level of freedom and partly eliminate micromanagement by the management, which necessitates having it clearly and well-defined on the types and extent of the modification. The improvements or modifications should not affect any resident within the building, and any tenant that might be using the property.

The improvements or modifications must not affect, and mostly reduce the property’s value especially on lighting and flooring. Aesthetics like painting afresh, changing curtains, doors, and windows are permitted. The tenant should not undertake them without the landlord’s approval, and, a building’s structure and foundation should not be negatively affected by the modifications. 

What is Included In the Addendum

There are a few basic components that anybody who is making the lease agreement should consider.

Such as;

Details such as tenant and landlord’s names, original lease agreement referral, date when the addendum is signed, date of the original lease agreement, property address, ZIP code, city, and state are included in the addendum agreement.

Next, a detailed explanation of all the allowed modifications is made. The tenant is obligated to expound on the use of the most used words in improvements and modifications, which are minor and reasonable among others. Some landlords may be willing to grant permission for aesthetics only, while others may be rigid about modifications being done on their property. Clarity of what works for both parties is crucial.

An acknowledgment of the addendum by both parties, the tenant and the landlord, is made writing their names and date and sealing the improvements and modification lease addendum with their signatures.

Free Templates

Drafting an improvements and modifications lease agreement should not be complicated. Including the right information is crucial in avoiding misunderstandings between the tenant and the landlord. We have the addendum template that is comprehensive and yet simple to understand that can be of help when drafting the addendum. The template is editable, therefore, allowing customization that best suits your needs. 

After drafting the addendum and both parties have some doubts, involving an expert such as a real estate agent or a lawyer would be recommended. The goal is to ensure that the parties to the agreement are comfortable with the details of the addendum, as well as the results after property improvement and modification have been done.


    Legally Binding or Not

    The improvements and modifications lease addendum is a contract between the tenant and the landlord. The fact that it is signed and attached to the original lease agreement, which is legally binding, automatically makes the addendum a legal document. Failure to meet the stipulated obligations by each party can attract legal intervention. However, different state laws govern different commercial leases. It is essential to consider these state laws while making the improvements and modifications lease addendum as the state you live in may have specific requirements.


    Improving and modifying leased property by tenants helps businesses to maintain their originality and image because customers can easily identify with consistent branding that results from the agreed-upon alterations between a landlord and the tenant. Therefore, to do so efficiently, the involvement of the improvements and modifications lease addendum is necessary.

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