Final answer:
In the context of a lease, when leasehold improvements revert back to the lessor, this means that any enhancements made by the lessee become the property of the lessor at the end of the lease. These can include physical changes to the property. It is essential for tenants to be aware of such terms within their lease agreements.
Step-by-step explanation:
Leasehold improvements to leased property that reverts back to the lessor at the end of the lease are typically enhancements made by the lessee to the leased space. These improvements can range from installing new floors to painting the walls or even more extensive renovations. The key point here is that once the lease term is over, the ownership and benefits of these improvements revert back to the owner or lessor of the property without compensation to the lessee. Therefore, it's crucial for tenants to understand their lease agreement, particularly clauses related to improvements and the rights after the termination of the lease.
According to the provided termination clause, upon the lease's expiration, the agreement may be renewed month-to-month until a notice of termination is given. It also states that the premises should be clear of the resident's belongings, and all provided keys returned, to consider the premises vacated. If the tenant remains or leaves possessions after the termination date, they can be held liable for additional rent and damages, which might include compensation for the owner's missed opportunities with new renters.