Chapter 5 - § 5.1 • INTRODUCTION

• Jurisdiction: Colorado

§ 5.1 • INTRODUCTION

A lease is an estate for a given time. Thus, by its nature, a lease will have a term. In fact, to be valid, a lease must have a definite and agreed-upon term.¹ In addition to being a legally essential provision of the lease, the term of the lease is of great practical importance to landlords and tenants. For example, a landlord may need to ensure that it has a certain level of occupancy in its building at all times under the terms of its financing, and may tailor lease terms accordingly; a tenant may need a lease term long enough for its business to take root; and a retail tenant will want to make sure that its lease does not expire during the holidays or other high sales times.

The term of a lease is the period from when the lease commences to when it expires. A well-written lease will clearly state the term, including the commencement date and expiration date of the lease. If not stated clearly, the landlord and tenant may end up fighting about when the tenant needs to start or stop...