Reading a commercial lease may be difficult and time consuming, but neglecting to do so can be very costly.
Tenants often focus on the business and economic terms in their leases, and
overlook legal jargon and boilerplate as mere details. However, the devil truly is in the details!
This is compounded by the fact that commercial tenants do not enjoy the same protections
under the law as residential tenants.
Additionally, although lease terms may have been carefully negotiated and agreed upon, it is
not unusual for some of those terms to be omitted or mischaracterized when they are reduced
to a written contract. Whether these errors are intentional or not, once a lease is signed, it is
generally binding as written. This is exacerbated by the fact that many commercial landlords
require their tenants to personally guaranty their leases, putting not only their businesses at
risk, but also their personal assets.
Often times, landlords present leases to tenants along with assurances that they are “standard” non-negotiable documents. However, this should not cause a tenant to let its guard down. In fact, it may be a red flag that something is wrong, very wrong!
It is every tenant’s right and responsibility to seek full understanding of its legal obligations
prior to signing a lease, and to properly negotiate or refuse any items that are unacceptable.
This is why it’s crucial to consult with trusted professionals before entering into a lease.
Experienced professionals can often find ways to reduce costs, minimize risks and align leases with the future plans of tenants. In fact, they can save invaluable time, money, and risk.
LeaseWatch is comprised of professionals who can provide sophisticated, customized and
economical lease administration and support services. If you are a tenant who would like more information about the terms of your commercial lease agreement, please contact LeaseWatch today at 561-998-2800 or visit us at www.leasewatch.org.
The foregoing is not legal advice and is for informational and discussion purposes only.