Q.Is My Option to Renew Valid and Enforceable?
A.An option to renew the lease occurs when a tenant exercises an option to remain on the leased premises for an additional specified term for a specified monthly rent. However, when the original lease provides that the tenant shall have the right to renew the lease for an additional term at a rent comparable to the "fair market value" or at the "prevailing rental rate for similar properties," the court will find such an option unenforceable due to vagueness.
For an option to renew to be enforceable, the essential terms and conditions of the renewal option must be definite and unambiguous in time and price.
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