Is your Commercial Lease About to Expire?
It is important to know what you may do, or may need to do when your commercial lease is coming to an end. Being prepared can help make the process a lot less stressful.
As a tenant, there is no obligation to remain at the premises once the lease has expired. Depending on the terms of your lease, if you do not have alternative premises to relocate to, there are a few options available to you such as:
If the landlord is agreeable, stay in the premises on a month to month basis;
Negotiate a new lease with the landlord; or
If your current lease allows, give notice to renew your lease for a further term.
If the lease gives the tenant an option to renew, the lease document will usually set out the process for renewing for the further term. The lease should state how much notice you must give to the landlord should you wish to renew the lease for the further term, and how the new rent is to be determined.
If you wish to relocate to alternative premises, it is also important for you to understand your obligations in regards to the condition you must leave the premises in when you vacate. You should also check your lease to see if there are any obligations to provide a period of notice to the landlord before vacating.
If you are unsure of your rights and obligations under your lease, please seek legal advice.