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In the tutorial, Matthieu explains how to create a pet addendum to a lease agreement using legal templates. He guides viewers on accessing the real estate forms and specifically finding the pet addendum section. Viewers are instructed to input details such as the landlord's name, tenant's names, property address, pet details, and more. The process ensures a thorough description of the pet, allowing for clarity in the agreement. This step-by-step guide helps landlords customize their lease agreements to include pet-related terms.