RUNNING LEASE Meaning and
Definition
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A running lease is a type of leasing agreement that provides the lessee with the option to extend the lease agreement on a periodic basis. It is a contractual arrangement between the lessor (landlord) and the lessee (tenant), allowing the lessee to renew the lease periodically without renegotiating the entire lease terms.
In a running lease, the duration of the lease is typically fixed, but the lease agreement includes provisions that allow the lessee to extend or renew the lease for additional terms. These provisions outline the conditions under which the lessee can exercise the option to continue the lease, such as the notice period for renewal and the terms for rent adjustment.
This type of lease is commonly found in commercial real estate and is beneficial for both landlords and tenants. For tenants, a running lease offers flexibility by providing the option to continue using the property for an extended period without the need to relocate. Landlords also benefit from this arrangement as it ensures a stable income stream and minimizes the potential vacancy risks.
It is important for both parties to clearly define the terms and conditions of the running lease in the initial lease agreement to avoid any misunderstandings or conflicts when exercising the option for renewal.
Common Misspellings for RUNNING LEASE
- eunning lease
- dunning lease
- funning lease
- tunning lease
- 5unning lease
- 4unning lease
- rynning lease
- rhnning lease
- rjnning lease
- rinning lease
- r8nning lease
- r7nning lease
- rubning lease
- rumning lease
- rujning lease
- ruhning lease
- runbing lease
- runming lease
- runjing lease
- runhing lease
Etymology of RUNNING LEASE
The term "running lease" does not have a specific etymology as it is a combination of two separate words. "Running" refers to the continuous or ongoing nature of the lease, while "lease" originates from the Middle English word "les" or "lese", meaning "to gather, collect, or gather together". As such, a running lease can be understood as a lease agreement that remains in effect for a prolonged period, typically with regular renewal options.
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