Don't Get Trapped Into Unpredictable Renewal Rent

You may think that you’ve won if you’ve negotiated a renewal option in your lease, which is a valuable right to many tenants. The downside is that many renewal options don’t specify what the renewal rent will be; they refer only to “the fair market rate.” If that’s the case with your lease, you could exercise your renewal option, only to find out afterwards that the owner plans to charge you a higher renewal rent than you expected—and you would be stuck paying it.

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