Commercial Real Estate Investment/lease problem



I am in AZ. I have leased a storage unit since 2005.  I have always been given the option to pay for one year in advance for  a 10% discount.  Two years ago a new owner took over and allowed the same terms.

This year in 1/1/2014,  I received a bill which allowed me to pay the annual payment as usual.  The check for 12 months was cashed 1/16/14.  I received a registered letter dated 2/5/14 due to construction, remodeling and other purposes we must vacate our unit by 4/7/14.  

Our lease says  "the lease will be renewed on a month to month, quarterly or years bases (depending upon payment method chosen).  Either party may terminate this agreement upon given written notice of (30) thirty days"

Question - Since they cashed my check, didn't return my money with the eviction notice, didn't even acknowledge having a year of rent payment, can they legally evict me before the end of my 12 months paid period?  

Loss of this storage unit right now would be a financial hardship as comparable unit size and cost are not available in this area.

I would appreciate your thoughts on this matter.

Sincerely,   Gabriel

hi Gabriel

well for starters, laws vary from state to state and 2nd, Im in Canada so I don't know how much help I can be to you.. that said, I would look at your lease...

is there a provision in the lease for demolition/ construction? your lease should say how this is to be handled.

if there is such a clause and they went by the book, eg give you proper notice, then they should return the money to you prorated, what was used / what is still paid in advance.

if there is no such clause, you could argue this. your lease is a way of holding real estate.

without actually reading your lease, theres not much more I can say but contract law anywhere should be "what's written between the four corners of that contract" everything else is hearsay.

let me know how it turns out.

best, Phil

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Phil Nicols


Legal issues which are specific from state to state.


Licensed Realtor since 1987, Broker Since 1991. Ontario Canada real estate -- Commercial, investment, leasing, business brokerage

Stockwell Realty Corporation


Real Estate Council of Ontario, Registered under the real estate and business brokers act 2002

Awards and Honors
A few from past organizations I belong to. Now with my own company, it's hard for me to give myself awards.

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Dealt with both small as well as regional tenants, individual investors to syndications.

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