Can I Renew my Commercial Property Lease?
Commercial property tenants do not always have the automatic right to renew their commercial lease. If a tenant waived their right to renew when the lease was first issued, they will be required to leave the premises when the lease is up. Only by negotiating with the landlord will they be allowed to renew.
As a tenant, you may also be denied the automatic right to renewal if you are a:
- Business farm tenant
- Mining tenant
- Service tenant
- On a fixed-term tenancy of six months or less
Broken Tenancy Contract
In situations where the tenancy contract has been broken, such as failing to pay the rent or using the property for purposes not stated in the contract, the tenant may lose the right to automatically renew. A landlord also has the right to repossess the property if he or she needs it for their purpose or to redecorate/refurbish.
If none of the above applies, a tenant should be able to automatically renew the lease as long as they follow the correct steps. A new lease must be requested in accordance with strict time limits and the landlord also has to respond within a defined time frame. A tenant has the right to challenge this opposition which can lead to lengthy disputes.
To avoid this and to make sure you do not miss critical time limits, speak to us for advice long before the lease is due to expire. We can help you make sure your lease renewal won’t be challenged and your business will be safe in its current premises.