I have been in my current leased location for 3 years and have two 1 year options left on my lease. I will be exercising one of my 1 year options at the end of the month and have informed my landlord as such. We have had a good relationship, I pay my rent on time and according to our lease he pays any repairs over $250.
What is the usual protocol for options?
Almost always it is best to give him a written letter sent via certified mail. This is best for everyone. Being a landlord it protects him as well for the year…
It would scare me to have such short options…If your landlord or someone who says they are willing to pay more wants your location you could find yourself in a tough spot…
Yes, in hindsight I wish I had gotten more/longer options, but I was down to my last dime when we opened. I was not concerned about three years down the road, I was just hoping I could make my first rent payment.
If things are going well…why not work out a new multi-year extension and save you both the hassle of doing this again in a year. Work out another 3-5 year term with new extensions. Might save you a little in the long run with so much retail space available… lock in your lease rates. Your landlord should welcome the stability of having this space leased for years too come.
One year option may work out for the best, I am considering purchasing my own building.