Section 22 Common Problems on Termination of Leases

• Library: Real Estate Leasing and Landlord-Tenant Actions and Remedies 2011

Because of the many problems that arise in the leasing of residential properties, landlords generally insert in residential leases a provision allowing the landlord to cancel the lease, without cause, upon 30 days’ notice. This clause is rarely acceptable in leases relating to business or commercial property. The tenant simply cannot afford to take a chance on the goodwill of the landlord. The landlord’s only solution in these cases is careful drafting of the clauses relating to the tenants’ duties, default, and termination of the lease. Leases often do not specifically address the landlord’s defaults. If a landlord has significant duties to the tenant under a lease, a tenant should consider whether the lease should contain provisions addressing defaults on the part of the landlord and the related remedies of the tenant.

Counsel should keep in mind that notice must be received by month-to-month commercial tenants, or holdover tenants with...