A lease renewal is the re-set point in the lease term, where the tenant could get into more preferable, less preferable, or neutral position as compared to the previous lease.
There are two critical points to be aware of. The first point being the lease rate. Do you have an option to renew? Does the option include a fair market value? Do you know that the fair market value is subjective to whoever is doing the market research? Do you see how you could lose money by simply agreeing with the landlord’s proposed rate?
Now let’s look at the second point. Lease renewal is the time when the balance of power shifts slightly in the tenants’ favor. If you were an outstanding tenant, the landlord will want you to stay. If there were lease terms that didn’t work for you, this is the time to renegotiate them. Are you happy with how the CAM budgets are done? Are the budgets done on time? Are they fair? Do you get your overpayment reimbursements in the timely manner? Are there any specific issues that haven’t been addressed? If you are leasing an office space, is it time for a new carpet or a paint facelift?
Since this is not your first lease, you are aware of the legal implications of this document. Doing the lease renewal the right way will save you both money and heartache in the long run (five to seven years is a long time to be bound by unfavorable terms).
Mr. Moschetti has been representing tenants in lease renewals and lease negotiations for over fifteen years. See our offer below on how we can help your specific case.