Require Foreign Tenant to Maintain Adequate Assets in U.S.

Leasing to a non-U.S. business raises special legal considerations. For example, you may be unable to enforce lease payment obligations and court judgments against tenants who keep their assets outside the U.S.

So, before signing a lease with a foreign tenant, confirm that the tenant keeps adequate assets in the U.S. and add lease language expressly requiring the tenant to maintain U.S. assets at no less than that level during the lease term.

To learn how to avoid four more common pitfalls when leasing to foreign tenants, see “Avoid Five Pitfalls When Leasing to a Non-U.S. Tenant,” available to subscribers here.