Common Commercial Lease Disputes
With more money and people involved, commercial leases tend to be much more complex than residential leases. That is why committing to a commercial leaseholds greater liability. If proper precautions are not taken, disputes can arise and complicate matters. Here are the most common commercial lease disputes.
Since commercial leases are typically at least three to five years, tenants must take the lease terms seriously and make sure that they can abide by them. Tenants should consider several factors when negotiating these terms, such as the age of the business, location, and cost of the rent. If it is unclear in these lease terms about the time period of the length, payments, or other matters, disputes can arise.
Early Lease Termination
When signing a commercial lease, a company agrees to stay in the building for a certain time period. However, sometimes situations can arise that might make it more difficult for a company to honor the lease. For example, if a company is struggling financially and on the verge of going out of business, it may have no choice but to terminate a lease early. There may be a few ways to legally break a commercial lease, such as filing for bankruptcy or subletting the property.
Failure to Maintain the Property
Just like residential properties, commercial buildings have to be maintained properly. Otherwise, the building can start to deteriorate in various ways and possibly pose danger for both employees and clients. In most cases, the landlord may be in breach of a commercial lease agreement by neglecting to maintain the property.
How Can You Resolve a Commercial Lease Dispute?
If you’re currently in the middle of a commercial lease dispute, you understandably feel stressed and worried. However, it’s important to take prompt action in order to come to a reasonable resolution.
Ideally, you may be able to settle the dispute through mediation. It can help you avoid court, saving you money and time. During mediation, a trained mediator can help you and the other party comes to an agreement that is favorable for everyone. It can help you have more control over the situation and maintain your privacy. It is important to have an experienced real estate litigation lawyer on your side during mediation sessions.