What Happens When Your Rental Agreement Expires

However, most contracts indicate that they can operate for a certain period of time and then continue to run on a periodic or rolling basis after that period, unless either party terminates it. If your contract says such a thing, it`s probably a good idea to let your landlord know that you`ll be leaving at the end of the deadline. You must do so in writing and you must ensure that the owner receives your letter or email at least 4 weeks before the end of the lease. Any type of commercial building, whether it is an office, a store or a restaurant – requires a commercial lease between the owner and the tenant. But what happens when a commercial lease comes to an end? What is the process you need to follow? Hello Alex, it is also worth noting that if you do not come to an agreement with the landlord, then you will be forced to pay the rent for the duration of the fixed term, since the lease has not been terminated. Most of the time, landlords fear that a tenant will leave before the end of the lease, but sometimes tenants decide to stay in the rent even after the tenancy period has expired. If you`ve done both, this is the day your message ends: technically, the tenant can stay as long as you leave it. This is called „Holdover rental,” which can cause a lot of inconvenience for you and your rental business. When this has happened, the tenancy agreement does not actually end, but leaves (provided the tenants do not move) at regular intervals, as stipulated in the agreement. Normally, this is for a periodic monthly rent.

Keep in mind that if you continue to accept the tenant`s rent after the end of the lease, you will need to notify them equal to the payment deadline before distributing them. Add to your tenancy a clause containing certain conditions that include hold-over rents if you don`t already do so, to avoid any misunderstanding in the future. If the landlord has to bear costs resulting from the irregular termination of the tenant, the landlord can sue the tenant if the damage exceeds the tenant`s deposit. A landlord should only sue the former tenant after relocation. Until the property is leased again, the owner can accurately assess the loss. The lessor may complain about a tenant`s search costs, for the period during which the property remained empty, about legal fees if such a clause was included in the tenancy agreement, and about the difference between the tenancy paid by the new tenant and the rental of the former tenant. If you stay in the unit after the lease expires, you must notify your landlord in writing if you wish to leave. You don`t have to do anything unless you receive a notice from your landlord. For the lease to actually expire, the basic rule is that all leases are protected with operating security, unless there is a specific clause in the lease that excludes that right.

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