Lease Agreements: Beware of the Lease Renewal Language
Many leases contain renewal language, allowing the lessee to renew the lease term after the original lease term expires, points out James O. Birr III of Jimerson Birr in Florida.
“These provisions sometimes contain notice requirements and fulfillment of certain conditions precedent. In some instances, the leases may automatically renew. In any case, the terms of the lease renewal require certainty and specificity,” he advises.
He discusses a recent Florida appellate ruling that points out that parties must be specific in negotiating renewal terms and what the rent to be paid during the renewal period will be.
