If there are no new conditions and John remains in the apartment, the lease agreement with the renewal option will continue permanently (unless otherwise stated) until it is amended or revoked by one of the parties. An extension option is a clause in a financial agreement that defines the terms of renewal or renewal of an initial contract. The extension option appears as an agreement in the original agreement and contains specifications in which entities can extend or extend the initial terms of an specified overtime. Options for extending or renewing a lease are essentially the same. They give the tenant the opportunity to continue renting the premises before the end of the rental period. An option to renew or renew the lease means that, when the tenant`s option (selection) is exercised, the provisions of the agreed option are adopted for another defined term. The terms of the option may include the length of the new term, a change in rent and other changes. If the option is with the tenant to request an extension, the landlord is required to accept under the terms of the option. If there is no possibility of renewing the contract, there is no party-wide obligation to renew the lease. John might also say he wants to stay, but might ask to review some terms. The owner may or may not accept these new conditions. If new terms are agreed, a new lease is signed or the old contract is updated and initiated. In some cases, renewal options may have certain conditions to meet for the extension.

For example, the tenant may undergo an additional credit check during the extension, so the landlord knows that the tenant is still in good financial condition. For clarity, we will designate the end of the lease as the expiry date, and the date John must inform the owner that he wishes to stay is the deadline for renewal. “Regardless of any other point, if the amount of rent is not agreed, the arbitration procedure is initiated at least three (3) months before the first day (s) of the extension period (s) with mandatory completion at least one (1) month before the first day of the extension period or periods of extension.” 6.3 The tenant who requests such an extension in writing to the lessor no later than 6 (6) months before the expiry of the tenancy period.