Legal Question in Landlord & Tenant Law in California

automatic lease renewal

Our hoa signed a lease to a Dadson Laundry Service, allowing them to use our laundry room in exchange for a share of the income from the machines. The lease they wanted was for 10 years. We told them we wanted to buy our own machines in 5 years, so we didn't want a lease longer than that. They sent an addendum and told us to write, ''The initial term of 10 years, mentioned in the opening paragraph, shall be changed to 5 years.'' We recently gave them notice that we will terminate their service at the end of the 5 years. They refused to end the lease because a section on a later page gives them the right to automatically renew for 2 additional terms, making that 5 year lease really 15 years. In addition, they have a ''right of first refusal'' where they can technically keep us leased indefinately as long as they can meet their competitors' bids (they don't have to meet their competitors' services or equipment). The lease is written in a difficult to understand manor. The salesman never mentioned these extensions to us. Can they hold us to this lease?


Asked on 2/02/08, 9:56 am

4 Answers from Attorneys
Robert L. Bennett Law offices of Robert L. Bennett

Re: automatic lease renewal

As Mr. Cosentino and Mr. Rothman indicate, there cannot be an answer without reviewing the lease.

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Answered on 2/03/08, 10:21 am
Ryan P. McClure The Law Offices of Ryan P. McClure

Re: automatic lease renewal

You need the lease reviewed. Your HOA community may already have a HOA attorney that provides legal services to your community, you should consult them, if not, feel free to contact my office.

http://www.rpmcclurelaw.com/

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Answered on 2/03/08, 10:34 am
Larry Rothman Larry Rothman & Associates

Re: automatic lease renewal

The lease may not be valid. We would have to review it to learn about its terms to advise you further. In some cases, automatic renewal clauses are valid.

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Answered on 2/02/08, 10:08 am
Marco Cosentino Law Office of Mark J. Leonardo

Re: automatic lease renewal

It is difficult to say without reviewing the entire lease. If the lease is not terribly long, I may be willing to review it for you free of charge.

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Answered on 2/02/08, 11:01 am


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