lease agreement with pens

NYC leasing contracts contain all sorts of clauses and terms, and that includes rules about renewing or terminating your lease once the initial agreement ends. You can also negotiate some terms of your own, especially if you have the help of our Long Island, NY real estate litigation lawyers. Here’s what renters need to know about lease renewal and termination rules.

Are Renewal Clauses in All NYC Leasing Contracts?

When tenants sign NYC leasing contracts, renewal is not always guaranteed. If you are in a regulated apartment, your landlord must ask you if you want to renew. This can be included as a provision in your lease, or they can notify you before your lease ends and ask you if you would like to renew. The landlord of a regulated apartment is also limited in how much they can raise the rent.

Commercial landlords are not actually required to renew your lease at all. Obviously, this can be a problem for someone running a business. No business owner wants to establish themselves somewhere, spend money on equipment, and then be required to move. Negotiating for a renewal clause in your lease agreement is definitely recommended.

Can I Negotiate Termination Clauses in NYC Leasing Contracts?

You can negotiate termination clauses in NYC leasing contracts if your landlord will accept it. This is more common in commercial leases, which tend to last longer than residential ones.

A good example of a potential termination clause is a contingency termination provision. This says that you can get out of your lease if your business is unable to get the license or permit that it needs to operate despite all reasonable efforts on your part. So, if you are running a bar and are unable to secure a liquor license despite your best efforts, you would be allowed to back out of your lease agreement.

You can try to negotiate an early termination clause whether you are renting a commercial or residential space. In most cases, you will need a valid reason for backing out of the lease agreement and you will need to give a landlord ample notice, usually at least 30 days. There could still be penalties for ending a lease early though, even if you and your landlord can come to some kind of agreement.

Should I Hire a Real Estate Lawyer?

A lawyer who has experience with NYC leasing contracts can help you understand exactly what you are signing up for. They can explain any existing renewal or termination clauses, or they can help you make a deal to have them included in your lease.

Schedule Your Consultation Today

No one should sign NYC leasing contracts if they do not completely understand them. If you need help negotiating a fair deal, contact David A. Gallo & Associates, LLP and tell us about the issues you have encountered. Our experienced attorneys will do their best to assist you.