You have a leased premises and, even though you have informed the tenant that you do not want to renew the contract, they have stayed and continue to pay the rent. In this case, has the contract been renewed?

The lease contract was agreed for a duration of three years; and, despite having informed the tenant in advance and by a reliable means (burofax) of your intention not to renew it, they have ignored it.

Well, in these cases, if by the expiration date the tenant continues to occupy the premises, you can file an eviction lawsuit requesting their eviction. In response to this lawsuit, you may find that your tenant argues, precisely, that they have been paying the rent until that moment and, therefore, there has been an implied extension of the contract and they have the right to continue occupying the premises.

But... what do the courts say about this? In cases where the landlord has duly and in advance communicated the intention not to renew the contract, the courts consider that there is no contractual extension, even if the tenant has accepted the payment of the rent.

In any case:

• To avoid this type of situations, include in the lease contract an economic penalty for each day that the tenant remains in the property after the contract has expired. This will incentivize them to vacate the premises and prevent a legal procedure.
• If, despite this, the tenant does not leave, you can claim the payment of the agreed penalty (in addition to the rents that accrue until you recover possession) without having to prove damages (the penalty will be automatic).

 

 

Our professionals will advise you on the negotiation and drafting of lease contracts, as well as when filing an extrajudicial and/or judicial claim in case of breach.