Note that a credit extension is different from a lease extension. An extension generally indicates that a new lease is being entered into, linking the parties to new potential terms. An extension merely continues the previous agreement, with some sections possibly being revised. A tenant who has complied with all the original terms of the lease and a lessor who wishes to keep them would use the same lease with renewal. As a result, both parties bypass the additional administrative work required to draft a new lease and the associated costs. A tenant needs extra time to find a new property or complete his move, and does not require a one-year or long-term lease, but several weeks or months. In this situation, it would be wiser to extend the lease instead of a new lease. Short-term rent extensions are generally monthly extensions with a higher rent amount, as opposed to a one-year extension. By definition, a rent extension is a new lease. The parties to the lease extend their lease-tenant relationship after the original lease expires. A rent extension may limit contracts that benefit the landlord or tenant, while they generally continue during a life extension. If the original lease has been reassigned, a rent extension could limit the remaining liability of the original tenant to the lessor.
As part of an extension of the rent, a legal date is set between the expiry of the initial tenancy period and the beginning of the extension period. “The renewal of the second period of rent extension is carried out on terms consistent with the landlord`s standard tenancy policy at the time, with the exception of the absence of a renewal fee and the fact that the rent and fees are agreed in writing between the landlord and the tenant in the exercise of the right of withdrawal.” The spread of the COVID 19 virus is a persistent global crisis. On March 23, 2020, the President announced a 21-day national blockade, effective midnight on March 26, 2020 until midnight on April 16, 2020. It was extended for an additional 14 days on 9 April 2020. It is not certain whether further extensions will be ordered or, if not, how life could slowly return to “normal”. As a direct result of the blockage at the federal level, all doors for all businesses (except those providing essential services) were closed from March 27, 2020 to April 30, 2020 at least. What does this mean for monthly rents? Are tenants entitled to the rent rebate during this period and, if so, to what extent? This is an issue that many tenants and landlords bring to mind.