Lease / pro-rated rent - Posted by Bob

Posted by JohnBoy on July 07, 2003 at 23:43:06:

The lease had expired. The tenant remained in possession where they were in a holdover period. The hold over is when the original lease has went full term and expired. So the question is, what is the law in that State pertaining to a commercial lease that is in a holdover period and the tenant wishes to vacate? Is the tenant required to give a 30 day written notice to terminate their tenancy? Or can they terminate at any time and only be obligated to pay for the number of days they occupied the property by having that month’s rent pro-rated? It has nothing to do with terminating a year lease 2 months early. The tenant occupied for the full term of the lease, whatever the time the lease was for. Then the tenant continued to occupy after the lease was up and went to a month to month where they were holding over after their original lease expired.

Lease / pro-rated rent - Posted by Bob

Posted by Bob on July 07, 2003 at 09:52:52:

Here is a question in regards to a lease agreement that does not spell out the terms of pro-rating rent when the tenant moves in the middle of the month.

I am the landlord. It is a commercial property. The building was just purchased and the lease was inherited and was in a holdover period, month to month status. The tenant wishes to move out the 10th of the month. Is it “customary” to pro-rate the month for the 10 days rent, or have them pay the entire month as it will be impossible to rent for the remaining month to someone else?

Thanks in advance.

Re: Lease / pro-rated rent - Posted by JohnBoy

Posted by JohnBoy on July 07, 2003 at 23:34:40:

If the original lease expires, where the tenant holds over, converting to a month to month, then typically by law, the tenant must give a 30 day notice to vacate. The 30 day notice would need to be given by the 1st of the month. So if the tenant vacates on the 10th, then they would not only be liable for that full months rent, but they would also be liable for the following full months rent since they never gave a 30 day written notice to vacate. This is the law in my State anyway. Other States may vary under their laws.

Also, a lot of commercial leases will obligate the tenant to pay double the rent when they hold over on a lease. You will need to read the lease and see what it says about holding over. You will also need to check what the laws are in your State pertaing to given a notice to vacate on a month to month.

I had a commercial lease that was a 5 year lease and had a option to renew for another 5 year term. The lease required me to give a 60 day written notice prior to my first 5 year term expired if I intended to exercise my option to renew for the other 5 year term. I did not do that because I didn’t want to renew for another 5 year term. So I just paid the rent on a month to month after the first 5 year term expired. The Landlord “assumed” I was obligated for the second 5 year term. But since I never exercised that right by giving the written notice required under the lease, I was not on the hook for the second 5 year option I had. I was only on a month to month as a hold over and my only obligation was to give a written 30 day notice to terminate my lease. This was per my attorney who specialized in commercial leases. Only you must give the 30 day written notice to terminate, prior to the 1st of the following month.

So if your State has a simular law, then your tenant would have been required to give you a 30 day written notice, prior to the 1st of th month they wished to terminate the month to month. Otherwise they are liable for paying the full month’s rent plus the following full month’s rent in order to serve proper notice to terminate their tenancy. Check with an attorney who knows commercial lease laws in your State and read what your lease says to see what rights you have.

Re: Lease / pro-rated rent - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on July 07, 2003 at 12:52:19:

A lease is usually for a long period, for example a one year lease. The tenant then owes for one year at the time of signing. Monthly payments are a convenience. If the tenant moves after 10 months of a 12 month lease. He owes the other two months. No pro ration is implied, unless it is written into the lease.