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A pet lease amendment is a document added to a rental agreement, granting landlords' legal permission for tenants to have specific pets in their unit. The video explains the difference between an addendum, which is attached when a lease is first signed, and an amendment, which changes the lease after occupancy. A pet lease amendment is used when a current tenant wants to add a pet to their lease. It is important to note that landlords can impose restrictions on pet types or sizes, such as allowing only cats or dogs up to 40 pounds. Additionally, lease amendments may include adjustments to monthly rent or deposits associated with pet ownership.