Before You Renew That Lease: A Warning for New Jersey Landlords
A landlord may have grounds to terminate a tenancy, but those grounds can potentially be lost depending upon what the landlord does next.
That is the important lesson from the New Jersey Appellate Division’s decision in NC Roseville Senior 2016 UR LLC v. Howard.
The case involved a landlord seeking to evict a tenant based upon prior nonpayment of rent. However, after the alleged default, the landlord renewed the tenant’s lease and accepted rent under the renewed lease.
The Appellate Division reaffirmed that when a landlord renews a tenant’s lease and accepts rent under that new lease, the landlord may waive the right to terminate the tenancy based upon an earlier default.
The landlord argued that federally subsidized housing requirements required the renewal. The court rejected that argument and determined the landlord had alternatives.
The practical lesson for landlords is simple: before signing a renewal lease, review the tenant’s history, rent ledger, notices, and any pending defaults.
Renewing first and attempting to rely on an old default later can create a waiver argument.
The decision to renew a lease should be intentional and made after reviewing all outstanding issues.
Law Office of Lawrence M. Centanni, P.C. represents landlords throughout New Jersey in eviction proceedings, lease enforcement matters, and landlord-tenant litigation.