A commercial lease is ending: how much notice must be given and how long does the tenant have to leave?

Question

José Manuel Alburquerque · Accepted Answer

The law sets no notice period for commercial premises, so whatever the lease says applies. If the lease has an end date and does not provide for extensions, it ends on that day without any need for notice. Even so, it is advisable to give notice in writing, because if the tenant stays on in the premises for fifteen more days without the landlord objecting, the lease is deemed renewed, normally from month to month. The tenant has no grace period to leave and must return the premises on the day the lease ends. Notice If the lease sets a notice period, for example to prevent an automatic extension, it must be observed. Late notice may leave the lease extended for the agreed period. If it sets nothing, the lease ends on the last day without any formal demand being needed. The prudent course is to send a “burofax”, a certified letter with proof of content, or another notice that leaves a record, before the expiry date or, at the latest, within the following fifteen days. This prevents tacit renewal (“tácita reconducción”), which is the renewal the law presumes when the tenant stays on in the premises with the landlord's consent. If the landlord continues to collect payments after the expiry date, it is advisable to state in writing that they are compensation for occupation and not rent. The notice periods that the law sets for homes do not apply to commercial premises. If the lease has no term and the rent is monthly, it is deemed to have been made by the month. It is enough to give notice for the end of the current month, although the prudent course is to do so at least a month in advance. If the lease does not exclude the goodwill compensation that the law provides for some shops, a tenant hoping to receive it must tell the landlord, four months before the end, that he or she wishes to renew for at least five more years at a market rent. How long the tenant has to leave There is no grace period. The premises must be vacated and the keys handed over on the last day of the lease. If the tenant does not leave, the landlord can claim: Eviction on expiry of the term, which is the court action to recover the premises. Whatever the lease has set for each day of delay, a penalty that is common in commercial leases and that the courts enforce if it is clearly worded. If nothing was agreed, the damage caused by the delay, which is usually calculated on the basis of the rent for the time the tenant occupies the premises. Before bringing a claim, an attempt at negotiation must be made. In a possession claim at the end of the lease, a clear demand to vacate offering to discuss timing or conditions may be enough, provided it is documented. In the meantime, the landlord cannot change the lock or cut off the utilities on his or her own initiative.