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  1. I am a MI tenant in a lease contract dispute with my landlord.
  2. Last year I signed a 12 month term contract with my apt complex. The following is stated:
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  4. 3. LEASE TERM. The initial term of the Lease Contract begins on the 12th day of October, 2019 and ends at midnight the 11th day of October, 2020. This Lease Contract will automatically renew (see section 15) unless either party gives at least days written notice of termination or intent to move-out as required by paragraph 37. If the number of days isn’t filled in, at least 60 days notice is required.
  5. Paragraph 15, referenced above, states the following:
  6. 15. RENT INCREASES AND LEASE CONTRACT CHANGES. No rent increases or Lease Contract changes are allowed before the initial Lease Contract term ends, except for changes allowed by any special provisions in paragraph 10, by a written addendum or amendment signed by your and us, or by reasonable changes of apartment rules allowed under paragraph 18. If, at least 5 days before the advance notice deadline referred to in paragraph 3, we give you written notice of rent increase or lease changes effective when the lease term or renewal period ends, this Lease Contract will automatically renew with the increased rent or lease changes. The new modified Lease Contract will begin on the date stated in the notice (without necessity of your signature) unless you give us written move-out notice under paragraph 37.
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  9. Timeline of Events:
  10. • ~8/1/2020 a note is left on my door, mentioning that my lease term was expiring soon, and to call the office about future leasing arrangements. Nothing was mentioned about the auto-renewal provision.
  11. • I call the apt complex 3x and left a voice message, my calls were never returned. The office had been closed all summer due to COVID, and I was out of town at the time. Already knowing that I would not be renewing my lease, I decided not to pursue additional action, thinking it unnecessary. At the time, I was completely unaware of the auto-renewal provision.
  12. • 8/14/2020 I receive a large packet at my doorstep containing a new lease contract, dated Oct 12,2020 - Oct 12, 2021. It had instructions to sign at various spots, and return to the office ASAP. This new lease contract was different than my previous contract. I thought this was just a sales push by management to try and get me to resign for the 2020-2021 year. Knowing that I was leaving when my lease term ends on 10/12/2020, I ignored it and pursued no additional action.
  13. • 9/8/2020 I go into the office to discuss move-out checklist. I am shocked to hear from them that my lease had auto-renewed since I had not given them a 60d written notice of termination. Additionally, I was even more shocked to hear that the packet left on my doorstep was the new lease terms for my 2020-2021 contract, and that even though I hadn't signed and consented to the new provisions, the old lease contract stipulated they could automatically be implemented.
  14. • Officer manager informs me that this new lease contract has an early termination buyout provision for $2,200.
  15. • Upon hearing all this, I immediately give them 60d written notice that I will be moving out 11/8/2020
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  18. Discrepancies:
  19. After analyzing the old lease contract in detail, I noticed that paragraph 15 stipulates that the apt complex must deliver the added changes to the "new lease contract" 5 days in advance of the 60d notice window. They failed to do this, delivering them 7 days afterward. Speaking with a friend who is in law school, as well as a family friend who is an attorney, we agreed that this "new lease contract" was non-binding; however, the old lease contract would still be controlling, due to the auto-renewal provision, and thus I would still be liable under the old terms for the 2020-2021 year. The old lease has no stipulated buy-out section. It does include the following however:
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  21. "Mitigation of Damages. If you move out early, you'll be subject to paragraph 11 and all other remedies. We'll exercise customary diligence to relet and minimize damages. We'll credit all subsequent rent that we actually receive from subsequent residents against your liability for past-due and future rent and other sums due.
  22. 11. EARLY MOVE-OUT. You'll be liable to us for a reletting charge of $300.00 (not to exceed 100% of the highest monthly rent during the lease term) if you:
  23. (1) fail to give written move-out notice as required in paragraphs 23 or 37; or
  24. (2) move out without paying rent in full for the entire lease term or renewal period; or
  25. (3) move out at our demand because of your default; or
  26. (4) are judicially evicted.
  27. The reletting charge is not a cancellation fee and does not release you from your obligations under this Lease Contract. See the next paragraph.
  28. Not a Release. The reletting charge is not a lease cancellation fee or buyout fee. It is an agreed-to liquidated amount covering only part of our damages, that is, our time, effort, and expense in finding and processing a replacement.These damages are uncertain and difficult to ascertain - particularly those relating to inconvenience,paperwork, advertising, showing apartments, utilities for showing, checking prospects, office overhead, marketing costs, and locator-service fees. You agree that the reletting charge is a reasonable estimate of such damages and that the charge is due whether or not our reletting attempts succeed. If no amount is stipulated, you must pay our actual reletting costs so far as they can be determined. The reletting charge does not release you from continued liability for: future or past-due rent; charges for cleaning, repairing, repainting, or unreturned keys; or other sums due."
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  31. My question:
  32. The language in the old lease contract is somewhat ambiguous, it merely states "This Lease Contract will automatically renew" but does not specify the exact term dates of said renewal. My family friend attorney seems to think that, because there is lack of explicit language around the dating of the auto-renewal provision, the default assumption in most states would be month-to-month terms. However, he is not a practitioner in MI nor specializes in this particular area of law.
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  34. If the default would fall to month to month, and the language in the old lease contract not explicit enough, then I could simply live out an extra month through 11/12/2020, and because I have already given my 60d notice, would not be liable for additional penalty.
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  37. Alternatives:
  38. • Could I demonstrate the new lease contract to be non-binding, claim mitigation of damages, pay the $300 fee, and hope that the building is able to find a new tenant to replace me quickly? The fear here is that the apt complex drags their feet and takes months to do so, making me liable for potentially more than $2,200 (currently paying $1100/month). However, with a complex of over 1,000 units it would be hard to for the company to argue vacancy over an extended duration
  39. • Upon move out, refuse to pay the additional bill and take them to small claims. My attorney believes there is a good chance I would win, based on the ambush language of the contract. Gains from victory would likely outweigh their attorney fees, so they may just concede
  40. • Take the loss, don't mention anything about the new contract being non-binding and pay the $2,200 fee.
  41. Thanks in advance for any assistance
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