Lease renewal process

What is the procedure to renew a lease by law? Can a tenant renew a lease agreement? How lease renewals benefit your agency 1. Renewing a lease saves you the cost of finding a new tenant.

This involves time and money spent.

Reduce length of vacancy. The note examines the procedure for serving a section notice, the procedure for serving a section request and applications to the court. This allows those negotiating a first time lease - the future landlord and tenant - to agree to exclude security of tenure. When such an agreement is in force, the tenant loses the right to renew.

Lease Renewal negotiations are often a more delicate process than the rent review negotiation as the tenant has no obligation to stay. Not all tenants under a commercial tenancy agreement have the right to a lease renewal when the tenancy expires. There are different procedures for termination and renewal of a lease under the Act depending on who initiates them.

The landlord initiates termination or renewal of a tenancy by serving a Section notice and the tenant initiates renewal of a tenancy by serving a Section request. How does a landlord serve a Section notice? However, if you are unsure of how to end or renew a business lease then this simple commercial property guide will help steer you through the process – and in the easiest possible way.

It will also outline why certain procedures need to be followe and offers a quick run-down of tenants’ rights and responsibilities as far as commercial property and business leases go. Starting the process the statutory rights under the existing lease must be terminated – by giving not less than six months’ notice but not more than months’ notice. You can ask the landlord to extend your lease at any time. Unlike with a rent review, the tenant has no obligation to stay and therefore both landlord and tenant must negotiate rent and lease renewal terms. However, not all tenants under a commercial tenancy agreement have the automatic right to renew their lease when the tenancy expires.

Hence, in cases like these rent negotiations need to be started earlier than usual, to ensure that you come to an agreement before the lease. The process of lease renewal is started off either by the landlord serving a notice with strict time constraints under section of the Act (either proposing a new tenancy with proposed new terms, or opposing renewal ) or the tenant serving a request for a new tenancy under section of the Act. This checklist, with complex conditional logic built-in, will guide you through the entire process and ensure that both the owner and tenant are satisfied with the end result. Three Easy Steps to Renew Your Lease When to Offer a Lease Renewal We recommend offering your tenant a lease renewal days before the lease expires.

The goal is to receive a reply within days so that you have at least days to find a new tenant if your current tenant declines the renewal offer. First of all, we’ll review who gets the right to renew a business lease, the landlor tenant or someone else. How can I keep lease extension costs down?

If you are sure that you wish to renew your Lease you can request the Landlord to grant one to you.

You must give at least and no more than months notice of your desire for a new tenancy. The earliest you can serve a Section request is therefore months before the expiry date stated in your Lease. You’ll also be given access to an online course area with several pieces of legislation and guidance. Guide to Offering a Lease Renewal 1. Determine the Lease Renewal Period. Generally, the lease renewal notice period should be days before the current.

Send a Lease Renewal Letter. A professional lease renewal letter is a great way to communicate with your tenant about. At the expiration of this term, the property reverts to the landlord. Lease renewal ( lease extension) A residential lease is granted for a specific term.

Once a lease has been granted the term immediately begins to get shorter. How long will it take to extend my lease ? Current and proposed terms for lease renewal. When renewing a lease , the current terms will display the property, unit, start-end rent and lease type of the current lease (prior to the renewal ) for reference.

You start the process by serving the tenant’s notice (section notice) on the ‘competent landlord’. The competent landlord is the landlord whose interest in the property is long enough to be able to grant the 90-year extension – that is, their interest is over years longer than the time left on your lease. A lease renewal is a new lease agreement. Under a lease renewal , there is a legal instant in time between the expiry of the original term and the commencement of the renewal term.

Unlike a lease renewal , an extension of the original lease is a continuation of the original lease , without interruption.