Make Automatic Renewal Clause as Specific as Possible
If you agree to an automatic renewal, make sure that the automatic renewal's terms are as specific as possible, says Pilar Bosch, a partner in the Miami office of Baker & McKenzie LLP. First, make sure you have the sole right to cancel the automatic renewal. Also, negotiate rent for the renewal term when you're negotiating the specifics of the initial lease term, Bosch says, and either specify the dollar amount of the rent, or tie the rent to a consumer price index. Doing so will provide a more solid basis for the renewal rent projection.