Legal Question in Landlord & Tenant Law in California

Re: When lease option is ecersised can landlord increase rent?

If the quoted language is the exact language from your lease, and there is nothing else about the option, then you and your landlord have a problem: the lease is extremely vague and ambiguous. In such a case, a court would look at a variety of extrinsic evidence to ascertain what the parties truly meant by the language of the option.

You are correct: what is the point of an option to renew, if you are merely renewing at market rate. The only benefit would be that you don't have to move. But typically, options are at a particular rate or term that is favorable to the tenant.

If there is enough at issue, you would want to sue your landlord for what is known as "declaratory relief". You would seek an early trial date (generally within 90 days of filing) and ask the judge to rule that your interpretation of the lease option is the correct interpretation. Such a case will likely involve at least one expert witness to testify to standard, custom, and practice in the industry.

We are real estate litigators with extensive experience in lease and purchase transactional problems that end up in litigation, from both a plaintiff and defense standpoint. We would be pleased to provide you with a no charge consult if you need to proceed further. Forward the relevant documents by email or fax.

Good luck.

***No Legal Services or Attorney Client Relationship - Although this email may provide information concerning potential legal issues, it is not a substitute for legal advice from qualified counsel. You should not and are not authorized to rely on this email as a source of legal advice. Until a formal Retainer Agreement is executed, any communication between you and The Guerrini Law Firm cannot create any attorney-client relationship between you and The Guerrini Law Firm.***

Re: When lease option is ecersised can landlord increase rent?

It would be a better idea to consult an attorney with a copy of the lease, so that a complete evaluation of the option may be made. If it is as you say, that you may lease for an additional five years at the same rent and with no increase, and you exercised your option timely, then the LL is bound and you are entitled to a five year extention on the same terms.

However, it may be that the lease provides for an increase in rent or common area expenses that you are missing. I could be wrong, though. Consult an attorney ASAP. Good luck.

Re: When lease option is ecersised can landlord increase rent?

If the agreement does not contain a rent increase, you can file an action for declaratory relief to determine your rights. It makes no difference if the property is sold unless there is a condition in the agreement pertaining to the sale of the property. Please call me if you have any other questions.