Is the tenant correct about being on a month-to-month lease?

Full question:

I own a commercial building in CO. A tenant asked for a new 2 yr lease and I agreed in a letter to a 1 year lease with 1 year option. The letter stated all other terms and conditions of the expired lease remain valid and in full force and effect. The tenant, 6 months into the new term, wants to move out and they beleive they are on a month to month lease term. I have no new signed lease agreement, only the letter issued to the tenant, and their regular monthly payments for six months. Are they correct in interpreting the lease to be month to month? Do I have any right to remedy for the one year monies? thanks

• Category: Landlord Tenant
• Subcategory: Lease Termination
• Date: 04/07/2025
• State: Colorado

Answer:

The letter you provided could be seen as a renewal of the previous lease. If the lease is interpreted this way, the tenant may be responsible for the full term of the lease, unless you have a legal obligation to mitigate damages by finding a new tenant.

Contract law typically considers several factors when determining the terms of a vague or incomplete contract:

1. Terms stated in discussions and writings exchanged that do not contradict the contract;
2. Terms implied by the conduct of both parties;
3. Terms implied by industry custom and practice;
4. Terms implied by applicable law.

In your case, the tenant's regular monthly payments over six months could be interpreted as acceptance of the lease terms. However, without a signed lease, the situation may be more complex.

To understand your rights and obligations regarding early termination, carefully review the original lease and the letter you sent. If you consider pursuing legal action, familiarize yourself with contract law and breach of contract principles. A breach occurs when one party fails to meet their contractual obligations, potentially causing economic harm to the other party.

Possible remedies for a breach include money damages, restitution, rescission, reformation, and specific performance. Money damages are often awarded to compensate for financial losses due to the breach. Restitution aims to return the injured party to their prior position, while rescission cancels the contract obligations. Specific performance may compel a party to fulfill their duties under the contract.

Consider consulting with a legal professional to assess your situation and explore your options.