Generally, a motel lease will be for a maximum term of twenty-five years. The term is usually broken down into an initial term of 10 years, with three options for a further five years each.
In most commercial leases you will find that, to exercise an option, the Tenant must give notice to the Landlord within a certain period of time. If the option period is not exercised within the time frame and in the manner specified in the lease then the Tenant will lose their right to exercise the option, and the lease will come to an end. It is as simple as that.
In a motel, where the value of the motel business is linked to the length of a Tenant's tenure, it is extremely important to ensure that your option is exercised (and documented) strictly in accordance with the terms of the lease.
Do not forget your option. If you are not sure, get your lease out and have a look at them. If you are still not sure, ask us!