Standard lease language typically requires that a tenant give notice of his/her intention to exercise a renewal option by a set deadline. However, some tenants underestimate the importance of meeting this deadline—and the possible consequences of missing it. This valuable message regarding renewal options is one of many being delivered to professionals participating in NRTA’s next Classroom LIVE Lease Administration training program starting April 12.

Two established experts in the Lease Administration field will provide a thorough understanding of how lease administration in the current economy plays a key role in the success of an organization. Learn more.

Lesson #1: A late notice can cost you your renewal option.

 width=Although some states require an owner to honor a late renewal notice that meets certain criteria, the truth is, those states are in the minority. In fact, most state courts are likely to rule that if a tenant serves its renewal notice late, the owner need not renew the lease.

As a lease administrator, it is your responsibility to keep track of lease deadlines and make sure you serve your renewal notice on time. How can you protect yourself from inadvertently missing critical deadlines? Require the owner to send you a reminder notice saying that the renewal notice deadline has passed—giving you a second shot at exercising your renewal option.

We can help explain the minority and majority state views on late renewal notices. In addition, we can provide model language, that you can personalize and adapt to your unique situation, to require the owner to give you a reminder notice.

Yes, you CAN avoid losing your renewal option. Be proactive! Whether you can convince an owner to send you a reminder notice if you miss the lease renewal notice will depend on your bargaining strength, and other factors. Large national retail tenants, for example, are likely to get an owner to agree to give them a reminder notice. Conversely, this type of requirement is less common in office leases.

Compliance within all facets of real estate lease management is essential. Successful lease professionals stay up-to-date regarding the latest changes in lease administration, and remain dedicated to utilizing proven best practices. Ongoing, timely education is a must.

NRTA is proudly collaborating with two seasoned professionals—Lisa Krizek and Kathy Powers-Middlecoop—to present a four-part real estate management course. This comprehensive series of classes provides the real estate student with an in-depth understanding of lease administration and the role of the Lease Administrator in 2022. The session covers all aspects of lease administration, from the receipt of a new lease, through expirations and renewals, to property turnover. Participants will gain a thorough understanding of how lease administration plays a key role in the success of an organization in today’s world.