Bounced rent checks are a major hassle. Your bank will charge you a fee for a bounced check, and then you will have to spend more time actually collecting the rent from the tenant. Also, by the time you redeposit the bounced check or get a new one from the tenant, the rent is way overdue.
If you haven't negotiated a garage lease recently, you may find that there are numerous matters that you must pay particular attention to during negotiations. Unlike most commercial leases, garage leases contain an array of unique issues that are not commonly encountered in a typical leasing...
In “Get Rent Protection with Contractual Lien,” (Insider, February 2009, p. 1), we recommended getting the tenant's signature on the UCC financing statement when it was signing the lease.
Time was, commercial property owners weren't terribly concerned about which bank issued the letter of credit securing its tenant's obligations under a lease. Banks were assumed to be solvent and well capitalized.
Many tenants these days demand a tenant improvement allowance (TIA) that is substantially bigger than what you want to give. For example, you may want to give the tenant a $30-per-square-foot TIA, but the tenant demands $45 per square foot. If the tenant has good credit, you may give in and loan...
All signs point to the economy getting worse before it gets better. So, more than likely, you are going to have your fair share of tenant bankruptcies. Be prepared by negotiating certain bankruptcy protections with all your tenants.
When negotiating a lease with a prospective tenant that plans to operate a restaurant it considers to be a “grill shop,” the tenant may demand that you agree not to rent space in your center to another grill shop. But if you agree to such a restriction, you may be unable to rent...
You might agree to give your retail tenant a rent concession—such as below-market minimum rent—to persuade it to sign your lease. And in return for the concession, you would expect the tenant to pay you a lot of percentage rent if its business takes off.
U.S. retail sales dropped 2.8 percent in October, and analysts don't expect the situation to improve anytime soon. The bad news has owners all over the country wondering how they're going to maintain a steady stream of revenue during this dismal holiday shopping season. Some are banking...
