Avoiding Lease Renewal Traps Under Ohio Law

Breaking a Lease Renewal Clause

You believe your lease is concluding, only to discover later that it has renewed automatically. No new signatures or discussions are required; the renewal occurs because a notice deadline was missed.

Automatic lease renewals represent an often-unnoticed complication within many Ohio leases, affecting both tenants and landlords alike.

Under Ohio’s Statute of Conveyances (R.C. 5301.01), that “automatic” renewal may not be enforceable. A little-known rule in state law can sometimes provide an escape route and, in some cases, turn what looked like a year-long commitment into a simple month-to-month tenancy.

The Hidden Danger in “Evergreen” Clauses

Many Ohio leases include what’s known as an automatic-renewal clause, or “evergreen” clause. On paper, it sounds harmless: the lease renews automatically unless one side gives written notice within a certain time frame, often 60 or 90 days before expiration. In practice, though, this clause can act like a trapdoor.

Imagine a tenant planning to move when a one-year lease ends. They failed to send the written non-renewal letter by the exact deadline, resulting in the lease renewing for another year, sometimes at a higher rent. The same scenario plays out in commercial spaces, restaurants, small shops, or offices, where busy owners overlook the fine print and suddenly find themselves locked in for several more years.

Landlords can get caught, too. A landlord expecting to raise rent or sell the property may discover the lease rolled over automatically, freezing terms for another full term. Either way, one party feels trapped in a contract that no longer fits.

The Ohio Legal Quirk That Changes Everything

Ohio’s Statute of Conveyances quietly limits how long a lease can last unless it’s properly signed and notarized. The rule is simple but powerful:

• A lease longer than three years must be acknowledged before a notary to be enforceable.
• Leases three years or less don’t require notarization.

This means that if a short lease includes automatic renewals that push it past the three-year mark, the renewal might not hold up in court because, legally, it’s no longer a short lease.

Say a tenant signs a two-year lease that renews automatically for another two years. The total potential term is four years, which exceeds the three-year limit. If that lease wasn’t notarized, the extended term could be invalid under R.C. 5301.01.

Ohio courts have reinforced this interpretation for decades. When a lease automatically renews indefinitely or beyond three years, it becomes what judges call a “perpetual” lease, and perpetual leases must meet the same notarization requirements as long-term property conveyances. If they don’t, the renewal isn’t enforceable.

When a Lease Isn’t Notarized

If a lease fails the notarization test, Ohio law doesn’t void it entirely. Instead, the courts usually treat it as a periodic tenancy based on how rent is paid. If rent is paid monthly, it becomes a month-to-month tenancy. If rent is annual, it becomes a year-to-year tenancy.

This nuance matters. A tenant in a non-notarized, automatically renewed four-year lease may not be bound for the extra term at all; they may owe rent for the next month or year, depending on how payments are structured.

Of course, not every case is open-and-shut. Courts sometimes apply “equitable” principles to prevent unfair results. If a tenant made major improvements or if both sides behaved as though the renewal were valid for years, a judge might still enforce it to avoid injustice. But generally speaking, lack of notarization gives tenants and sometimes landlords a strong legal argument for ending an unwanted renewal.

How to Tell If You’re Trapped (or Not)

If you’re stuck in an unexpected renewal, start by digging out your paperwork. Read the renewal language carefully. Is it automatic or optional? Does it specify exact notice dates? Then flip to the end of the lease and look for a notary seal or acknowledgment statement.

If you can’t find one, and the total term, including renewals, runs beyond three years, you may have leverage. That doesn’t mean you can walk away, but it does mean the other party’s claim to a full multi-year renewal may not stand up under Ohio law.

In these cases, it’s crucial to act quickly but thoughtfully. Send written notice of your intent not to renew or to terminate, even if you’re past the deadline. Continue paying rent while consulting an attorney; this helps preserve good faith and avoids a potential breach claim. Then have a lawyer review the lease under R.C. 5301.01 and advise whether the automatic renewal can be challenged or renegotiated.

Tips for Landlords

Landlords who rely on automatic renewals should tread carefully, too. If a lease isn’t notarized and the term stretches beyond three years, that renewal clause may collapse when challenged.

To protect your investment:

• Ensure any long-term lease or renewal exceeding three years is properly acknowledged before a notary.
• Avoid drafting leases that renew indefinitely. Cap the total duration or require mutual agreement for each extension.
• Send written renewal reminders to tenants rather than relying on silence to extend a lease.

How to Avoid the Problem

The best time to deal with automatic renewals is before you sign. Tenants should always ask their attorney to flag any self-renewing language and to clarify notice periods. If a renewal is reasonable, make sure the total term doesn’t exceed three years unless it’s properly notarized.

If you’re already in a lease, set reminders well in advance of your notice deadline. Sixty or ninety days may sound generous, but in the rush of business or life, those dates slip by easily.

Ohio Law Rewards Attention to Detail

Automatic renewals occur quietly, relying on one side and ignoring deadlines or legal statutes.

Under Ohio law, silence doesn’t always hold, especially if the lease isn’t notarized and longer than three years. A notary stamp can distinguish between a binding contract and a month-to-month tenancy.

If you’re uncertain about your lease or facing an automatic renewal you didn’t want, consult an Ohio real-estate attorney before making your next move.

Reach out to our team now!