3 common issues landlords have with commercial tenants

On Behalf of | May 12, 2022 | Business And Commercial Law

A number of unique and complex situations can arise when a landlord leases out a space to a commercial tenant. The relationship a landlord has with a business owner on their property is very different than that of a typical residential tenant.

Landlords can resolve most issues that can arise when dealing with a commercial tenant simply by referring to the lease agreement. When a tenant contests a provision of the agreement, the result is a sensitive issue that may ultimately result in an eviction case.

1. Maintenance disputes

When damages occur on a property that may affect the tenant’s commercial business, tensions may flare when fingers start to point at who might be responsible for funding the repairs. Depending on the terms of the lease, the landlord might only be responsible for certain maintenance tasks such as structural repairs.

2. Unapproved lease assignments

If a commercial tenant decides to sell their business, they will likely attempt a lease assignment to transfer the property to the new owner. A series of misunderstandings can occur when the original tenant fails to get the landlord’s approval of the new tenant, or if the original tenant neglects their continued liability to make the rent payments.

3. Renewal misunderstandings

After successfully conducting business on a property for a number of months or years, a commercial tenant might expect to renew the lease under the original terms. The landlord is not necessarily obligated to present the same terms at the time of renewal, which can frustrate tenants who have concerns over how they will continue to run their business.

Landlords seeking to evict a commercial tenant over serious disputes are dealing with a very specific area of business law. Success in such a case may depend upon quality professional counsel.