Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 1 month ago on . Most recent reply

User Stats

218
Posts
94
Votes
Mario Morales
94
Votes |
218
Posts

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!

Loading replies...