What is a lease extension?

A lease extension is defined as an agreement to continue the rental period under the same terms. This means that the original lease agreement is effectively extended beyond its initial expiration date, allowing the tenant to remain in the property and rent under the same conditions initially established. This can be particularly useful for both tenants who wish to stay longer without entering into a new lease with potentially different terms, and landlords who prefer continuity with existing tenants rather than seeking new renters.

In contrast, the other options present different concepts. Terminating the rental period implies ending the current lease, rather than extending it. A new lease with different terms would indicate a completely new agreement, possibly with changes to rent or other conditions, which does not align with the nature of an extension. Lastly, modifying the rental price only would suggest a renegotiation rather than an extension of the lease term; such a modification could occur independently of the lease term itself. Thus, the choice that best encapsulates the essence of a lease extension is the continuation of the rental agreement under the same established terms.