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Updated about 2 years ago on . Most recent reply
Can I request a higher rate than what is in the renewal clause?
How enforceable are option to renew clauses in leases? I bought a building in 2020 and the current tenants price per square foot is very low. Their lease expires in August and they have reached out to renew. Their renewal clause has a 2% increase per year for three years, obviously rental rates are not what they were in 2017 when this lease started. Can we request a higher rate that’s closer to market value? Or do we have to honor the 2% increase?
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Greg M.
#2 General Landlording & Rental Properties Contributor
#2 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
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Greg M.#2 General Landlording & Rental Properties Contributor
#2 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
These posts always blow my mind. Yes, you must honor the contract.