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When a lease agreement ends, it doesn't always mean the landlord and tenant will separate; a new lease may be established or the original lease can be extended. This is done through a lease extension addendum, which serves to extend the original lease and set a new expiration date agreed upon by both parties. The addendum may also address any changes in rent prices, especially if the original lease is nearing expiration, as it’s common for monthly rent to increase. While the original lease provisions remain unchanged, both the landlord and tenant must sign the lease extension addendum for it to be legally binding. This is essential for either party considering a lease extension.