Final answer:
Tenants under a ground lease may be entitled to compensation for improvements at the end of the lease, dependent on lease terms and local laws. A lease might automatically renew month to month unless notice is given. Overstaying the termination date can lead to extra liabilities.
Step-by-step explanation:
Under certain types of leases, such as a ground lease, the tenant may be entitled to compensation for the value of improvements made to the property if the lease is not renewed. This is especially pertinent in long-term ground leases, where the tenant may have invested considerable funds into the land or buildings. However, the entitlement to compensation at the end of a lease depends on the specific terms stated within the lease agreement itself, and local or state real estate laws. For instance, some ground leases might include a clause that allows for the valuation and compensation of improvements made by tenants.
It should be noted that upon termination of a leasing period, as per many standard lease agreements, the lease might be renewed automatically from month to month unless a notice of intention to terminate the lease is provided by either party. If a tenant remains in possession of the property beyond the termination date without proper agreement, they may be liable for additional rent and could potentially impede the owner's ability to rent to new tenants, causing further damages.