Legal Definitions - tacit relocation

Tacit relocation refers to the automatic, unstated renewal of a lease agreement. This legal principle typically applies when both the landlord and the tenant fail to explicitly communicate their intention to end the lease at its scheduled expiration date. If both parties continue to act as if the lease is still in effect—for instance, the tenant keeps paying rent and the landlord keeps accepting it—the law may presume that the lease has been renewed, often for a similar period as the original or on a year-to-year basis, even without a new written agreement.

Here are some examples to illustrate this concept:

• Residential Apartment Lease: Imagine a tenant has a one-year lease for an apartment that is set to expire on June 30th. Neither the tenant nor the landlord sends a formal notice to terminate the lease before this date. On July 1st, the tenant pays the usual monthly rent, and the landlord accepts it without objection. Because both parties continued their previous arrangement without explicitly ending it, a new lease term (often for another year or on a month-to-month basis, depending on local laws) is implied through tacit relocation.

• Commercial Office Space: A small marketing agency has a three-year lease for its office space. The lease term officially ends on December 31st. The agency continues to operate its business from the premises, pays the January rent, and the landlord accepts it without any new lease document being signed or termination notice given. The continued payment and acceptance of rent, coupled with the tenant's ongoing use of the property, indicates an implied agreement to renew the lease, even though no formal paperwork was completed. This is an instance of tacit relocation.

• Retail Storefront Lease: A clothing boutique's five-year lease for its storefront is due to expire. The boutique owner is busy with seasonal sales and forgets to formally renew or terminate the lease. The property management company also doesn't send a reminder or termination notice. After the original lease term ends, the boutique continues to occupy the store, and the property management company continues to send monthly invoices for rent, which the boutique pays. Despite the lack of a new written agreement or explicit discussion, the actions of both the boutique (continuing to occupy and pay rent) and the property management company (continuing to accept rent and provide the space) imply a renewal of the lease through tacit relocation.