Renting is one of the most significant expenses a company or corporation has. Depending on where you are leasing, things can get more complicated than what is considered a standard lease. It is crucial to understand and familiarize yourself with the legality of a commercial renting agreement. Terms and conditions can alter how you use your leased-out space and when you can decide to change where you are renting. Breaking the contract could end up in legal trouble.
Evaluate your needs before entering into an agreement. How long will you be occupying the space? Short-term leases typically last three to five years, while long-term leases can last for up to ten years. Make sure you know if you can pre-terminate a lease. Breaking a lease before the time is up can result in money lost from deposits, denial of access to the property, and being sued in court.
There are some cases in which you breach the lease, and it may be terminated straight away. Monetary grounds for termination are classified by a failure to pay rent, taxes, and the cost of repairs. Failure to pay rent does not automatically terminate your lease, but your landlord does reserve the right to do so and evict you. However, they must give notice before eviction.
Non-monetary grounds for termination typically constitute a breach in the lease agreement, such as an implied warranty of habitability. Landlords can have grounds for termination if a tenant attempts to sublease a property or fails to have liability insurance.
Entering into a commercial lease agreement does not come without its complications. However, an experienced attorney from Alvarez & Diaz-Silveira LLC can help you understand the legally binding contracts that go with it.