Here is a graph of the possible consequences that could prevent an extension of the rent: as the Jahangiri court pointed out, the parties must be specific when negotiating the terms of renewal and what the amount of rent will be during the extension period. If the amount of the renewal rent can only be determined after future negotiations or litigation, this provision is not clear enough to give a meeting of minds and agreement on a substantial term of the lease. In Ludal, the court found that the rent renewal provision was applicable because it allowed for negotiation and agreements between the parties for the extension of the rental rate, and if they failed to reach an agreement, the tenant was granted the right to reject a bona fide offer that the lessor had received. In this case, the tenant, the lessor and the court were not required to fill any of the gaps in the calculation of the amount of rent payable during the extension period. This amount of rent would be easy to determine as soon as a third-party offer was made on the property, since the third party`s offer was the new rent to be paid. Yes, a lease can be automatically renewed in Florida. As long as there is a provision in the lease agreement that says the lease is renewed, tenants and landlords can continue as normal after the lease expires. However, if no provision is included in the lease, it will expire. Therefore, the parties should include a dollar amount to be paid for the rent during the extension period, or use a specific calculation that leaves no unanswered questions about how the renewal rent is calculated. If such a feature is not included, it may result in no binding rent renewal provision. Whether you are a landlord or a tenant, the results of this could be catastrophic.
In Jahangiri, the tenant and lessor entered into a five-year contract that set the initial rent for the first two years and an additional rate for the next three years. The lease also provided that the lessor could renew the lease. However, the renewal language in the tenancy agreement did not contain a fixed amount to be paid, but provided for: standard housing rent (self-renewal) 1.