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Updated about 1 year ago on . Most recent reply

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Mario Morales
103
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236
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Commercial Lease Renewal

Mario Morales
Posted

I have a commercial tenant whose lease automatically renews every 5 years unless they give 30 days' notice. The lease does not specify rent increases for renewal periods. I purchased this building, it came with this lease and annual 3% rental increase, and the tenant has paid without issue.

Now that it’s renewing on May 1, 2024, I want to:

✔ Send a letter explaining the following

✔ Adjust rent to $1,150 for six months, then $1,200, with a 4% annual increase.
✔ Clarify that tenant is responsible for all repairs inside the unit, while I only handle structural or residential-related issues. As the previous lease makes no mention on responsibilities. 

Questions:

1️⃣ Can I legally enforce a rent increase since the lease auto-renews but doesn’t specify renewal rates?Appreciate any advice from fellow landlords!

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