Month: May 2022

When you are renting a commercial property, of course, you want everything to go as smoothly as possible. Operating a business takes all of your attention, and any disruption can be costly. However, as with any contractual relationship, disputes arise between tenants and their landlords. But don’t lose hope! With a little bit of help, resolving commercial property lease disputes without litigation or vacating the property can be possible.

Common Types of Commercial Lease Disputes

Commercial property leases can be complicated, and a wide variety of issues can arise, but here are the kinds of disputes you are most likely to encounter.

Failure to Pay Rent

It should come as no surprise that the relationship between landlord and tenant is ultimately about money. Therefore, the most likely point of contention between them is the tenant’s refusal to pay rent. It may be that the tenant doesn’t have the funds, or they are withholding rent over a larger dispute. Whatever the case, not paying rent will quickly escalate the situation.

Maintenance Issues

Maintenance issues generally fit into one of two categories. Either the renter and landlord can’t agree on who is responsible for certain types of maintenance (if a water pipe breaks, for example), or the parties fail to their responsibilities. Even seemingly small maintenance issues can balloon out of control if left unresolved.

Improvements/Modifications to the Property

It is often the case that a business owner will want to change a property to accommodate their business. These changes can range from painting the walls to installing heavy machinery. Disputes may arise over the tenant’s right to make these changes and who is responsible for paying for them.

Early Termination/Subleasing

If a tenant wants to vacate the property before the lease term is finished, it can lead to serious conflict with the landlord. For example, it may be that each side disputes how much money is owed to the landlord in that situation, or the tenant may wish to sublease someone else, and the landlord disputes their right to do so.

Resolving Commercial Property Lease Disputes

Most of the time, when it comes to resolving commercial property lease disputes, both landlord and tenant are keen to avoid litigation. However, the path to resolution can vary greatly depending on the situation. For instance, the landlord may want to take advantage of increased rental prices in the area, or it maybe the global pandemic has caused economic problems for both parties, and they are just trying to keep their heads above water. Whatever the situation, here are some general tips to minimize the fallout.

First, don’t say anything you’ll regret. It’s a lot easier to escalate than to de-escalate a situation. Once emotions come into play, people are less inclined to compromise. Also, you may have an ongoing relationship with the other party for years to come, which can be awkward if you’ve personally offended them.

Having taken a breath, your next step should be to consult an attorney. You need to understand your legal position before negotiating a fair resolution, and you need to be sure you aren’t missing any critical deadlines. Also, an experienced real estate attorney will typically better understand what options are available in a given situation. If you are a business owner strapped for cash, it may sound counter-intuitive to hire a lawyer, but you are much more likely to have a better outcome with professional help.

Southern California Real Estate Experts

If you are a commercial landlord or tenant having a dispute over your property lease, don’t let the problem snowball. Rely on our experienced real estate attorneys to help resolve your commercial property lease dispute. Contact us today to schedule a consultation.