Option to renew commercial lease sample

No Installation Needed. Convert PDF to Editable Online. Instantly Find and Download Legal Forms Drafted by Attorneys for Your State. Provided that Lessee is not in default in the performance of this lease, Lessee shall have the option to renew the lease for an additional term of twelve months commencing at the expiration of the initial lease term.

All of the terms and conditions of the lease shall apply during the renewal term except that the monthly rent shall be the sum of $000. Tenants may use this accessible form letter template to notify their landlord of their intention to exercise the option to extend their rental property lease according to the terms in the original lease document. Therefore, if the tenant chooses to exercise the option to renew lease, the provisions of this option get adopted for another specified term.

Sample Option to Renew Term. Subject to the written consent of the other Party, each Party has an option to renew for another ten (10) years by giving notice of its exercise of the option at least ninety (90) days prior to expiration of the initial ten (10) year period. A different version of the lease renewal letter, this time for commercial properties.

If your tenant’s business is doing goo he or she is going to want to keep staying in that location. So in a way, if the business is good for the tenant, the business is good for the landlord. A moderate, landlord-oriented sample option to extend the lease term provision is also included for your convenience. Use Option to Extend (Avoid Option to Renew) There are differences between an “ extension” option and a “ renewal” option.

How do you extend a lease agreement? An option to renew creates a new leasehold estate and effectively surrenders the original lease. What does option to extend mean?

It is common in commercial lease agreements to contain an option for the tenant to continue its occupancy of the premises beyond the initial term. When that kind of option is grante the landlord and tenant should pay careful attention to whether the lease provides the tenant with either a right to renew or extend the lease, because those terms provide for distinctly different rights and obligations in the resulting lease agreements after the tenant has exercised its option. The lease will usually provide that the new lease will be on the same terms as the existing lease, except that the rent will be reviewed in accordance with the rent review mechanism in the lease.

The Renewal Agreement allows the Landlord and Tenant to continue the renting relationship while also giving them the opportunity to make any necessary changes to their original lease , such as new occupants, rules, or payment arrangements. Rental Rate : In some cases the renewal clause will have a predetermined renewal rental rate, but the more common approach is to have the renewal financial terms tied to a determination of “fair. Instant Downloa Mail Paper Copy or Hard Copy Delivery, Start and Order Now! Real Estate, Family Law, Estate Planning, Business Forms and Power of Attorney Forms.

Such Renewal Term shall be subject to all of the terms, covenants, and conditions of this Lease. Landlord hereby grants to Tenant the following option(s) to � renew, or � exten the term of the lease agreement referenced above. The first option is for a term beginning on expiration of the original term of the lease and ending year(s) thereafter. Check out more tips on how to get tenants to renew their lease. Before offering a lease renewal , you should also consider if you want to change any of your rental rules.

Many tenants have preconceived notions regarding a lease renewal or how they typically work, and quite often these ideas are inaccurate or completely wrong. Some commons misconceptions include: Exercising the option : Tenants often assume that you must exercise the renewal option in order to renew the lease. An option clause is a term in a commercial or retail lease that permits a tenant to renew their lease at the end of the initial lease period. However, they must meet certain conditions.

For example, a three-year lease may also have one three-year option , making it six years if the tenant chooses to exercise the option. Most commercial tenants believe that securing an option to extend their lease term upon expiration is important. They realize how inconvenient, perhaps even devastating, being forced to relocate their business can be if they need to remain in place. Renewing will prevent you from having to relocate, which is the desired requirement for most companies.

Thus, commercial lease agreements usually contain renewal clauses, allowing tenants to extend an already lengthy lease for another term. Paragraph of the lease, which was attached as part of a 12-page rider, granted the tenants an option to renew for a 10-year term provided “that Tenant shall notify the landlord in writing by registered or certified mail six (6) months prior to the last day of the term of the lease that tenant desires such renewal. To have a commercial lease renewal, you need to inform your landlord 6-months prior to the lease’s expiry date that you wish to renew.

Lease agreements can apply to both. Make sure you state the terms of the lease, such as the amount of rent paid and the duration of the new lease in the renewal notice. Your landlord will have two months to dispute the granting of a new lease on one of the grounds listed below. Commercial Leases greatly differ with residential leases and are specific only to renters who will be using the space for business.

Name of Tenant Address of Tenant City, State, Zip Code. Name of Landlord Address of Landlord City, State, Zip Code.