If you’ve included the option to renew in your lease, then you must select the number of renewal terms the lessee has, and how long each of those terms will be. For example, let’s say the initial term of the lease is 120 months (ten years). The lease may grant the lessee three additional terms at 36 months each, effectively extending the lease for up to nine more years (at the lessee’s option). These are the choices you must make now. Enter the number of renewal terms, then type in a number of months for each term.
Note: The lessee is never required to exercise all or any of the options. As each renewal term expires, the lessee can choose again whether to exercise additional options and remain on the premises.