Tenancy Agreements - Option For Renewal And Its Enforceability

Renting A Place

Option To Renew

In most tenancy agreements, there is a section which grants the tenant the option to renew the lease for a further fixed period. An apparent advantage of having such a clause is that it allows both parties to seamlessly transition into a renewal contract without any changes to the original tenancy agreement. However, that is not always necessarily the case.

Should disputes between the landlord and tenant be brought before the courts, the courts may take into consideration all the relevant objective evidence and the intention of the parties at the time they entered into the contract to ascertain the terms. On this basis, it would suggest that the more ambiguous the clause is, the less obligatory it becomes.

Ideally, the contract should reflect a mutually agreed, negotiated position, taking into account the parties’ considerations. Ambiguity in the terms and conditions of a tenancy agreement, which are often the cause of dispute between tenants and landlords, may hinder and warp a person’s understanding of their rights and obligations as either a tenant or a landlord. To reduce the likelihood of disputes, one should always seek professional assistance when it comes to negotiating or drafting any rental agreement at the outset so that parties are clear to what to expect from each other. 

To reduce the likelihood of disputes, one should always seek professional assistance when it comes to negotiating or drafting any rental agreement at the outset so that parties are clear to what to expect from each other.

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