When does a commercial lease have to be renewed?

20 Feb 2017 A commercial Tenant had a right of renewal in their lease after their initial three year term had expired. They did not formally exercise the right of renewal provided by their lease, but continued to occupy the property and pay rent to the Landlord.

Who is entitled to new lease when lease expires?

Business tenants usually have rights which mean that they are entitled to a new lease when their current lease expires. These rights are contained in the Landlord & Tenant Act 1954 (“the 1954 Act”). 1.

Can a landlord exclude a commercial lease from protection?

As a landlord, you can exclude a commercial lease from protection by ‘contracting out’. A strict procedure must be followed prior to contracting out a lease, but once this has been completed, the tenant is obliged to vacate the commercial premises at the end of the term specified in the lease.

Can a tenant be excluded from the 1954 Act?

The rights in the 1954 Act can be excluded if the parties agree to this before the lease is completed. Formal notice (in a specified form) must be served on the Tenant before he signs the lease and the Tenant must sign a declaration to acknowledge receipt of such notice. A specific clause must also be included in the lease.

When did the one year commercial lease start?

A one year commercial lease was entered in May 2012 with an option to extend the lease on a year-to-year basis for an additional five years. The lease called for the rent in the renewal term to be negotiated. Yet, it was not.

When does a commercial lease need to be renewed?

Any commercial building, whether an office, shop or restaurant, requires a commercial lease between the landlord and tenant. If your commercial lease agreement is nearing the end of its agreed term and your tenants wish to remain, it is advisable to be aware of the specific rights of the tenant regarding a renewal.

When do commercial leases end in New Jersey?

That question was recently resolved by the New Jersey Court in the case of Jacob Zlotkin v. Leora Dubrovsky Realty Group LLC, decided in September 2016. A one year commercial lease was entered in May 2012 with an option to extend the lease on a year-to-year basis for an additional five years.

Can a tenant say no to a lease renewal?

A lease renewal won’t always work. For one, you may not want to renew with a tenant if he or she has skipped rent payments or didn’t take care of the property. And sometimes tenants will say no to a renewal for various reasons: Tenant is moving out of state for a new job. Tenant moves closer to their workplace.

When do you send a lease renewal notice?

Landlords should offer tenants a lease renewal notice 90 days before the lease expires. You can offer in-person, send via email, or send a letter. The goal is to receive a reply within 30 days so that you have at least 60 days to find a new tenant if your current tenant declines the renewal offer.

What do you need to know about a month to month lease renewal?

Renewing to a Month-to-Month Rental Lease A fixed-term lease renewal is when you sign a new lease with current tenants for a fixed period of time. However, tenants may want a month-to-month lease renewal instead, meaning the lease continues on a month-to-month basis. This is helpful for tenants if they want to temporarily stay in your unit.

What are the reasons to not renew a lease?

Reasons to NOT Renew 1 New landlord; 2 Change of management; 3 Construction; 4 Needed repairs; 5 Tenant is repetitively late on rent; or 6 Tenant is constantly violating the lease.

When to send a not renewing lease letter?

A letter to not renew informs a landlord or tenant that they will not be renewing their lease agreement. This is common within 60 days of the lease expiration date and includes instructions on where to return the security deposit.

What happens to a tenant when their lease expires?

When a lease expires, a tenant may opt to move, renew a lease, or continue to pay rent as a month to month tenant. If you offer a lease renewal, agreement is at the tenant’s discretion. If they choose not to renew a lease, they must vacate the property in accordance with the expiring lease.

When do landlords have to give reason for non-renewal?

Dane County: Both the City of Madison and Dane County have current ordinances that say that a landlord needs to give reasons for non-renewals to the tenants they are non-renewing. However, 2013 Wis. Act 76 seems to have made that requirement illegal.