Civil Litigation Lawyer|Balms Group International

Balms Group International

International Lawyers and Advisors

How to Deal With Common Commercial Lease Issues?

Before moving a commercial property on rent, many landlords wouldrequire to enter into legally binding leasehold agreements. A commerciallease agreement may have several points of negotiations that need to betaken care of. In such cases, a commercial real estate lawyer could helpyou to understand some important and complex points of the leaseagreement. I have collected a list of issues to share with you that couldalso pose challenges in your commercial leasing. Take care of the followingpoints and hire a professional to understand the implications of thecommercial leasing laws and regulations before you enter into a contract.

Take care of the following points and hire a professional to understand the implications of the commercial leasing laws and regulations before you enter into a contract.

• Subleasing Issues

For tenants, subleasing can be quite profitable as it promises a good amount of money. But from the landlord’s point of view, it can be quite risky as there is a risk of parting your property with a third party. Moreover, there is no guarantee of the kind of business they are doing in subleased space and no surety of the rental income. It is necessary to get everything signed on the papers if you want to sublease your commercial property.

• Maintenance Issues

The terms and conditions for the maintenanceand repair of the property must be clearlydefined in the agreement. There may bedisagreements over the responsibility of repairsto the property especially if you are leasing thefull commercial building to a single tenant.

• Rent Issues

The most common reason for a disputebetween the landlord and a tenant of acommercial building is the rent of thebuilding. Before signing and consideringany monthly rent agreement, ask manyquestions that may clarify the rent clauseof the agreement. What would be thebase rent? Is it a fixed rent or escalateover time? Would there be a free rentperiod?

• Operating expenses

In most cases, the tenant isresponsible for the operatingexpenses of a building if it is fullyleased out. The landlords may betroubles if the tenants shirk theirhands from such liabilities. Theoperating expenses can cost a lotmore to a landlord so it is on the partof the landlords to properly mentionthe liabilities of the tenants in theagreement.

• Operating expenses

In most cases, the tenant is responsible forthe operating expenses of a building if it isfully leased out. The landlords may betroubles if the tenants shirk their hands fromsuch liabilities. The operating expenses cancost a lot more to a landlord so it is on thepart of the landlords to properly mentionthe liabilities of the tenants in theagreement.

•Conclusion

Due to the extreme intricacies of a leaseagreement, disputes or common issues can getworse in the absence of a commercial real estatelawyer. So it is recommended to hire one if youwant to settle your lease agreements peacefully.The real estate professional will not only make youunderstand the complicated terms of the contractbut will also help you in negotiating through thebusiness.

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