1. Trust between rental property owners and potential tenants can lead to unfair lease negotiations in Florida.
2. Elderly rental property owners are particularly vulnerable to being taken advantage of by tenants.
3. Prospective tenants with prior relationships with property owners may negotiate friendly or unlawful lease provisions, such as free rent or undefined lease terms.
4. Florida courts have interpreted these situations and may provide guidance for future cases. 1. The lease is likely unenforceable due to its indefinite term and provision for zero rent.
2. Under Florida law, the court may refuse to enforce the lease or limit the application of the unconscionable provision.
3. Procedural unconscionability is based on the individual circumstances of the parties at the time of contract, including their bargaining power and ability to understand the terms. – Florida courts do not favor perpetual lease renewal clauses and have held similarly worded clauses to be invalid after the first renewal.
– The courts have established that a lease provision allowing automatic renewals without more is not enough to establish a perpetual lease.
– The courts have voided leases with indefinite renewal options on the grounds that they could prevent a landlord from using the property for any other purpose and create an unreasonable restraint on alienation. 1. The court in Schroeder v. Crimson Investments, Inc. held that a lease granting the tenant the right to extend for successive five-year periods did not grant perpetual renewals.
2. The court in Chessmasters, L.C. v. Estate of Sneed held that a lease with a provision for automatic renewal for successive five-year periods did not limit the number of renewals and did not grant perpetual renewal.
3. Based on the case law, it is likely that a Florida court would find a purported perpetual renewal clause to be invalid.
4. Rental property owners should consult with an attorney experienced in lease preparation and negotiation before signing any lease to avoid potential issues.
https://www.jimersonfirm.com/blog/2023/07/is-a-lease-with-an-indefinite-renewal-period-enforceable-in-florida/
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