What could be a consequence of a breach of lease?

A breach of lease often leads to significant legal and financial ramifications for the party not adhering to the lease terms. The possibility of eviction or penalties arises because lease agreements are legally binding contracts, and when one party fails to comply with the contractual obligations, the other party typically has grounds to take legal action. This can include initiating eviction proceedings if the breach is severe, such as not paying rent or causing damage to the property. Penalties might also include financial repercussions, like having to pay for any damages incurred due to the breach or remaining responsible for rent even after vacating the property in some cases.

The other options do not represent typical consequences of a breach of lease. Increased property value is not directly tied to lease breaches; rather, it can often decrease due to poor management or tenant issues. Automatic renewal of the lease is generally contingent upon fulfilling the lease terms, meaning if a breach occurs, this renewal would typically not be granted. Lastly, a breach of lease does not equate to a transfer of ownership rights, as ownership remains with the landlord unless legally transferred through specific actions, which are separate from lease compliance issues.