Tenant and Landlord lease

In the state of Texas; a lease says: Tenant or Landlord can extend contract for 2(3) terms. Can landlord refuse extension according to Texas law? Or does the option usually fall upon the tenant's decision?
In Leasing Property - Asked by Jay B. - Jun 20, 2014
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Answer(s)

Margaret B.
Broker/Agent
Glen Ellyn, IL

The landlord can refuse to extend the contract, as can the tenant. It should be an "option" term which must be mutually agreed upon by both landlord and tenant.

Jun 21, 2014
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Ron L.
Broker/Agent
Dallas, TX

If a Tenant has an option to renew a lease for a period of time, the Landlord cannot refuse the extension, if it is written into the lease. In most cases the lease stipulates that the Tenant has the option to renew the lease at the Market Rate, at the expiry date of the initial lease. The market rate can be determined by arbitration. Very few Landlords will stipulate a rental for the option period. However Tenants can insist that the rental for the option period not exceed a certain percentage. Say 10% or 15% higher than rental at the expiry of the initial lease. This would obligate the Landlord to a rental for the option period, if Tenant gives the correct notice to Landlord of his intention to take up the option.

Jun 21, 2014
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Douglas B.
Broker/Agent
Dallas, TX

In addition to the above, sometimes there are stipulations in the option to renew that you need to be aware of. Such a stipulation might be that the option to renew has a time period/window in which one party needs to notify the other party of their desire to extend their lease or forfeit this right. This typically would be in the form of a written notice as required by the lease. Another stipulation that we normally include in our Renewal Options, is that the Tenant will forfeit their right to renew should they be in default, or have been in default of their base lease. The advice and counsel of an Attorney should be sought.

Jun 26, 2014
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