Final answer:
In Texas, an automatic lease renewal means the lease extends month-to-month after expiration, but termination requires a 30-day notice with 'just cause' and complete vacation of the premises.
Step-by-step explanation:
If an automatic lease renewal clause is included in a commercial lease in Texas, the lease agreement is extended on a month-to-month basis after the initial leasing period expires. The clause requires either party to give a 30-day written notice if they intend to terminate the lease. This notice must include 'just cause' if applicable by law. Additionally, the property must be completely vacated, including storage areas, and all keys and property provided for use must be returned to the owner. If the resident does not vacate by the termination date or leaves possessions behind, they can be held liable for additional rent and damages, which may impact the owner's opportunity to rent to new tenants.