May 7, 2010
What happens at the end of a lease?
There are some very important considerations when you approach the termination date of the lease.
Negotiate for a new Lease: you should start talking to your landlord at lease 6 months before the expiry date. If negotiations break down...
Negotiate for a new Lease: you should start talking to your landlord at lease 6 months before the expiry date. If negotiations break down...
Category: Lease Negotiation
What happens at the end of a lease?
There are some very important considerations when you approach the termination date of the lease.
Negotiate for a new Lease: you should start talking to your landlord at lease 6 months before the expiry date. If negotiations break down, this allows you sufficient time to find alternate premises. Remember you landlord is not obliged to renew your Lease. The closer you are to the expiry date the less negotiation power you have because you may not be able to find alternate premises in such a short period of time. The landlord may take advantage of this by increasing the rent beyond what you would otherwise had expected. Remember this is the end of lease and so the landlord does not have to justify the asking rent.
Six months before the end of Lease the landlord should inform you whether a new lease will be offered. If this notice is not given, you should write to him requesting it. You then have 6 months from the end of your lease before the lease is considered at an end. At the end of lease you are on a month to month tenancy. Either party can give the other 30 days notice to vacate.
Make Good: Leases usually provide for the tenant to make good at the end of the lease, that is, to restore the premises to the condition they were in when the lease commenced taking into account fair wear and tear. This is often a source of contention – to what extent does tenant have to restore. Taking photos when you enter into possession is a really great idea in the event there is a difference of opinion as to the condition of the premises at that time.
There are some very important considerations when you approach the termination date of the lease.
Negotiate for a new Lease: you should start talking to your landlord at lease 6 months before the expiry date. If negotiations break down, this allows you sufficient time to find alternate premises. Remember you landlord is not obliged to renew your Lease. The closer you are to the expiry date the less negotiation power you have because you may not be able to find alternate premises in such a short period of time. The landlord may take advantage of this by increasing the rent beyond what you would otherwise had expected. Remember this is the end of lease and so the landlord does not have to justify the asking rent.
Six months before the end of Lease the landlord should inform you whether a new lease will be offered. If this notice is not given, you should write to him requesting it. You then have 6 months from the end of your lease before the lease is considered at an end. At the end of lease you are on a month to month tenancy. Either party can give the other 30 days notice to vacate.
Make Good: Leases usually provide for the tenant to make good at the end of the lease, that is, to restore the premises to the condition they were in when the lease commenced taking into account fair wear and tear. This is often a source of contention – to what extent does tenant have to restore. Taking photos when you enter into possession is a really great idea in the event there is a difference of opinion as to the condition of the premises at that time.