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We have a disagreement between a business/commercial landlord and tenant over the renewal terms of the lease agreement. It is written as:

"The term commences on the commencement date and expires one year later. The term shall automatically renew for an additional lease term of one year unless terminated by written notice of tenant".

The Landlord interprets this as a 1 year + 1 more year. The tenant interprets this as renewing multiple times, year after year, unless terminated by tenant. Landlord wants to increase rent drastically and remove the automatic renewal language from the upcoming contract. Which is the proper view in Michigan?

Jason Aller
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Annie
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1 Answers1

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The landlord's reading is more likely to be the correct one.

The term shall automatically renew for an additional lease term of one year ...

"An" refers to a singular instance and there is no suggestion elsewhere that the additional year will create another automatic renewal. In fact, interpreting it this way measn that, except at the instigation of the tenant only, the lease will never expire - this cannot be what was intended.

Dale M
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