One of the first lessons a property owner learns is to always have the tenant sign a written lease. Having a written lease, the property owner believes, avoids ambiguities and provides both sides with an understanding of their rights and responsibilities. Unfortunately for property owners, there are times when even the clearest provisions of the lease are not worth the paper they are written on. In particular, this can occur when a tenant seeks to renew his or her lease.
Under New Jersey law, equity will permit a tenant’s technical noncompliance with the exercise of an option to renew a lease when: (1) "substantial harm would result to the tenants if forced to relocate"; (2) "the landlord did not change position in reliance on the tenants’ delay"; (3) the tenant’s "failure to give timely notice was based upon an honest mistake of fact in that they had forgotten the date of the deadline"; (4) "the delay was slight"; and (5) "the loss to [the landlord was] insignificant." Below is a discussion of the circumstance where a property owner may not be able to enforce a written lease against his/her tenant, and how counsel can advise property owners to avoid this pitfall.
