Having read a fair bit on leasing out property on a fixed-term lease, I am increasingly apprehensive about leasing out my property. It seems that unless both the landlord and the tenant agree to a termination at the 5-year mark (minimum to be considered long term lease), the lease is automatically extended for another 5.
As a result, the tenant can be a huge liability as the landlord can’t easily unilaterally terminate the contract even if it is for something as reasonable as the sale of the property.
I am simply doing preliminary discovery right now but this gives me pause. Has anyone on the forum had a nightmare experience relating to this? What are everyone’s thoughts on this?
Are talking about leasing a residential property? I’ve heard nightmare stories, but I’m not sure how true they are. You should probably discuss the issue with your lawyer, but FYI, my lease contract is for 2 years with autorenewal terms of 1 year thereafter and clauses that stipulate that I can only cancel the contract after 3 years, unless I decide to move into my property myself. I’m not sure if the law has changed, but my contract was signed in April 2020.
Thanks for the info — I am reaching out to my attorney on this too. I just don’t want to be in a situation where I have to pay some tenant to move so I can either move in myself or sell the property.
I agree the lease terms are not landlord friendly generally, but I do not think they are bad. You should definitely see a what you can get with a lawyer.
For reference, my long term lease for my property is a 3 year lease with auto renewal for another 3 years unless I oppose renewal 120 days before the term is up. The tenant can oppose the 3 year renewal with 90 day notice, or terminate the initial term early with 120 days notice after the first year.