Poor lease wording from previous owner of property (Massachusetts)
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[{"id": "eiu1w9s", "text": "Pretty clear that the option period's starting rent needs to be mutually agreed upon, as you state. Listen to your attorney but objectively this seems hard to argue with. If the tenant is under market this could be a good opportunity to boost rent if you can stomach the costs. ", "replies": [], "depth": 1}, {"id": "eiuc3n5", "text": "Really should be looking at the lease as a whole to get the full picture but just looking at this clause alone I would forget the rate increase language all together. Seems like for the extension to happen at all the rate must be \"mutually agreed by Lessor.\" Despite any language limiting increase amounts, if you do not agree to the rate - there is no extension. I'm not a lawyer and I'm not sure a judge would actually agree with me, but its how I would approach it from a property management perspective. Anyway, if I were in your shoes, I'd be looking for all the ways you can terminate the lease at its end and then negotiate a new lease from scratch. I don't think you want to be bound by the old poorly constructed contracts if at all possible. Anyway, please get a good lawyer, they're worth every penny.", "replies": [], "depth": 1}, {"id": "eiudvgz", "text": "Tenant is wrong as the wording is crystal clear.  The new lease rate will be decided upon the execution of the extension.  It literally says that - \"The annual rent during the extension period, \\* to be mutually agreed upon by the Lessor and Lessee\\* ...\"    \n\n\nIn my experience executing leases and extensions, rent is commonly renegotiated in extensions (though isn't often bumped more than your typical 3-5%).  ", "replies": [], "depth": 1}]