Like many landlords, your lease may contain a tax escalation clause requiring the tenant to pay its share of any real estate tax increases that occur during the lease term. These increases are often measured off a base year, typically the first year of the lease. However, pegging future tax...
Include 10 terms in your termination option clause.
Extraordinary individuals are the driving force behind many startups and small businesses. But leasing to tenants that depend so heavily on such individuals is risky. The business could suddenly come to a...
Prospective tenants who aren’t fully financed might be reluctant to sign a lease unless and until they know they’ll be able to secure an operating loan. If they can’t get the loan they need, they’ll...
Don’t rely on “implied” covenants that aren’t expressly stated in the lease if you want retail tenants to continuously operate from their space. There’s a possibility that a court will find that such a covenant exists in limited circumstances, such as when the lease...
Grudges are part of any personal or business relationships. It’s a lesson that most landlords learn when tenants bring or threaten lawsuits over old grievances in a bid to get out of their lease, stall an eviction, or otherwise increase their leverage over you in a current dispute....
If a tenant exercises a renewal option without following all the procedures or requirements set out in the renewal clause, object right away. Failure to speak now may mean that you’ll forever have to hold your peace. That’s because a court might determine that in keeping silent you...
