An owner of commercial real estate is usually concerned with at least five types of expenses: (1) property taxes; (2) property insurance; (3) CAM expenses (the cost of common area maintenance, e.g. parking lots, sidewalks, and landscaping); (4) utilities; and (5) janitorial services.Read More
Sometimes commercial landlords and tenants are so eager to sign a written lease agreement that they neglect to include all of the essential terms that will govern the relationship. When this happens, it is likely that the parties do not even have an enforceable contract.Read More
Almost all commercial leases have a provision that in some form or another prohibits the tenant from subleasing to a third party without the landlord’s prior written consent. But what would happen if the tenant ignored that provision, subleased the property without the landlord’s knowledge, and made money off of the sublease? Would the landlord be entitled to collect that money from the tenant?Read More
Fact scenario: A commercial tenant breaches the lease. There are three years left on the term of the lease. The commercial landlord is therefore damaged in the amount of monthly rent for the 36 months left on the lease. But, the landlord may not be able to hold the tenant liable for all 36 months of rent. The landlord must take reasonable steps to find a new tenant and thereby reduce or “mitigate" the damages.
John Doe is an aspiring entrepreneur and wants to lease a building for his brilliant restaurant idea. John Doe sets up ABC Restaurant, Inc. ABC Restaurant, Inc. and the landlord enter a five-year lease. The landlord incurs $30,000 in tenant improvement expenses.
If a tenant is not paying rent, both commercial and residential landlords can take the tenant's possessions which the tenant keeps at the rented premises as long as the possessions are not exempt from being taken.Read More
Many leases are long, have huge paragraphs, tiny font, and use a lot of legalese. Like Muffy from Arthur said, "It's exactly what we talked about, just written in a way no one can understand."Read More
To avoid disagreements, it is best to pick a set time that both parties are willing to honor. 24 hours is probably a good rule that will allow the landlord to schedule unplanned visits but also allow the tenant to prepare for the visit.Read More