Change to Lease Agreement

[Stover]

All tenants leases automatically renew for an additional year on the lease anniversary date. Each tenant has been a tenant for at least three (3) years. I want to amend each lease agreement and change it to a month-to- month agreement. Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement. The property is located in Ohio.

 

[adjusterjack]

Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement.

Yes.

And, depending on the wording of the automatic renewal provision, you might not be able to do it even then.

You're the landlord. You wrote, or provided, the lease contract. If you don't understand it, I suggest you have an attorney explain it to you.

 

[Just Blue]

All tenants leases automatically renew for an additional year on the lease anniversary date. Each tenant has been a tenant for at least three (3) years. I want to amend each lease agreement and change it to a month-to- month agreement. Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement. The property is located in Ohio.

Based on this post and other threads you have made here, you should really hire a reputable Property Management firm. They will do comprehensive background checks and know the LL/Tenant laws.

 

[FarmerJ]

Your tenants have no incentive to agree to that kind of change in writing. So re read your leases and make darn sure you plan far enough ahead of time to begin to do the changes SO carefully re read to learn what changes you can make or if that auto renewal is written in a way that allows you to end it. If not then perhaps your only other tool to address this would be with rent increases that are enough that the tenants may choose to leave rather than continue to stay on. You didnt say who wrote the leases or how those leases came to be but I am curious to know if these were all tenants you installed or did you acquire this property with those tenants in place?

 

[LdiJ]

All tenants leases automatically renew for an additional year on the lease anniversary date. Each tenant has been a tenant for at least three (3) years. I want to amend each lease agreement and change it to a month-to- month agreement. Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement. The property is located in Ohio.

If your lease does not give you a notice provision (ie 60 days before the end of the lease period) then you will have to default to state law as to when you have to notify them that they have to sign a new lease with different provisions in order to continue to live there. If your lease is written poorly you might even have a problem changing anything at all.

I concur with the others that you need to consult a local attorney with a copy of your lease in hand.

 

[zddoodah]

Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement.

Unless your leases give you a unilateral right to amend them, you cannot amend them without the tenants' agreement. Beyond that, no one who hasn't read your leases can answer this question intelligently.

 

[quincy]

All tenants leases automatically renew for an additional year on the lease anniversary date. Each tenant has been a tenant for at least three (3) years. I want to amend each lease agreement and change it to a month-to- month agreement. Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement. The property is located in Ohio.

What I did with our leases is to send to all tenants a “lease addendum” that was incorporated into the existing lease agreement. I asked tenants to sign the addendum. By signing the addendum, the tenants agreed to the terms and conditions of the addendum.

The final statement on the lease addendum read that those tenants residing in one of my rentals under an existing lease would not be immediately subject to the conditions however, as leases expire, all new leases and those wishing to renew leases would be required to sign the addendum and abide by the conditions of the lease addendum.

In our case, some of our rental leases required addendums because the on-campus area where they were located had become smoke-free. We could no longer allow tenants to smoke.

 

[Litigator22]

All tenants leases automatically renew for an additional year on the lease anniversary date. Each tenant has been a tenant for at least three (3) years. I want to amend each lease agreement and change it to a month-to- month agreement. Do I have to wait until the anniversary date of each lease to change it to a month-to-month agreement. The property is located in Ohio.

Before you proceed to bring about amendments to the lease agreements, first things first:

Are they enforceable as written? For instance:

1. Do the lease agreements contain a clause or provision permitting either party to terminate the lease upon giving an advanced notice of that intention?

If not (and assuming that the lessor alone dictated the document's material terms and conditions) THEN because of their perpetual and immutable features they would be subject to being declared unconscionable and/or contracts of adhesion and/or contrary to public policy and therefore voidable and unenforceable.

2. Do the lease agreements comply with Ohio's statute of conveyances?

If not, then by operation of law they are defective and invalid. And in each instance the tenancy became a month-to-month tenancy wherein either party may terminate by giving the other party notice at least thirty days prior to the periodic rental date. *

[*]See: Ruben v. S.M. & N. Corp. (1993), 83 Ohio App.3d 80; Haught vs. Geissinger , Ohio Court of Appeals Case No. CA2008-03-010; Ohio Revised Code Sections 5301 and 5221.17)

 

[Stover]

The lease does have a clause that permits either party to terminate by giving a 30 day written notice.

 

[Litigator22]

The lease does have a clause that permits either party to terminate by giving a 30 day written notice.

I would have suspected so. Now as to my second question - do the agreements comply with Ohio's statute of conveyances? *
______________________

[*] Extracting from the Ohio Court of Appeals case of Haught vs. Geissinger (ibid)

"According to Ohio R.C. 5301.01, "A deed, mortgage, *** or lease of any interest in real property *** shall be signed by the grantor, mortgagor, vendor, or lessor in the case of a deed, mortgage, land contract, or lease ***. The signing shall be acknowledged *** before a judge or clerk of a court of record in this state, or a county auditor, county engineer, notary public, or mayor, who shall certify that acknowledgement and subscribe the official's name to the certificate of acknowledgement."

The language contained in the statute is mandatory and expresses the legal requirements necessary to create a valid lease." Citing 380 East Town Assoc. v. Mangus (June 20, 1991), Franklin App. No. 91AP-92. (Emphasis mine)

 

[quincy]

I would have suspected so. Now as to my second question - do the agreements comply with Ohio's statute of conveyances? *
______________________

[*] Extracting from the Ohio Court of Appeals case of Haught vs. Geissinger (ibid)

"According to Ohio R.C. 5301.01, "A deed, mortgage, *** or lease of any interest in real property *** shall be signed by the grantor, mortgagor, vendor, or lessor in the case of a deed, mortgage, land contract, or lease ***. The signing shall be acknowledged *** before a judge or clerk of a court of record in this state, or a county auditor, county engineer, notary public, or mayor, who shall certify that acknowledgement and subscribe the official's name to the certificate of acknowledgement."

The language contained in the statute is mandatory and expresses the legal requirements necessary to create a valid lease." Citing 380 East Town Assoc. v. Mangus (June 20, 1991), Franklin App. No. 91AP-92. (Emphasis mine)

Litigator, this is a rental lease.

 

[Zigner]

Litigator, this is a rental lease.

Yes, but due to the length of the lease and the auto-renewal provision, it would fall under the information that Lit posted. He didn't explain that part very well...

 

[quincy]

Yes, but due to the length of the lease and the auto-renewal provision, it would fall under the information that Lit posted. He didn't explain that part very well...

I agree that Litigator didn’t explain it well.

There is no transfer of ownership in the property so the annual lease must be renewed by both the tenant and landlord at the end of the year or it becomes a month to month tenancy. The lease can be terminated by either upon giving proper notice.

I think that was what Litigator was saying by pointing out what the rental lease was not.

 

[Litigator22]

Litigator, this is a rental lease. (?)

Dear Q:

I suggest that you read pertinent language contained in the Ohio statute of conveyances as follows:

"Section 5301.01 Acknowledgment of deed, mortgage, land contract, lease or memorandum of trust.
(A) A deed, mortgage, land contract * * * or LEASE OF ANY INTEREST IN REAL PROPERTY, * * * " (Emphasis added)

Also this from the Ohio courts findings in Haught vs. Geissinger (noting that as in the case at hand the lease covered a residential apartment as well as containing an annual, automatic renewal clause):

"In May 2001, Geissinger signed a lease agreeing to rent one of Haught's apartments for $360 per month. The lease contained a provision entitled "Renewal of Agreement" that stated: "At the end of the 12 months term, this agreement will automatically be renewed for an additional 12 months and thereafter every 12 months, under the same terms and conditions. The agreement can be terminated or modified by giving written notice 60 days prior to the renewal date." (Emphasis added)

And once again from the Ohio court's ruling:

"The language contained in the statute is mandatory and expresses the legal requirements necessary to create a valid lease."

"When defectively executed, the lease is invalid and "it is well settled that where purported lessee takes possession under a defectively-executed lease and pays rent, a tenancy will be implied and is subject to all terms of the purported lease except duration. (case cited) In lieu of an enforceable lease provision, the duration in an implied tenancy will be based on the payment terms in the invalid lease so that if the lessor pays on a monthly basis, a month to month tenancy will be created."

 

[quincy]

Okay. I need more coffee to understand what you are trying to say.