Commercial landlord-tenant relationships can be beneficial to all parties. However, this mutually beneficial relationship must be founded upon a watertight commercial lease agreement.
Where such agreements are ambiguous or unfair, disputes can arise. A dispute in the commercial sector can mean that business ceases to continue, at least not to full capacity. It also means that both parties to the dispute may lose money in terms of income and have to cover legal fees for lengthy court battles.
Recognizing some of the more common sources of commercial lease disputes could help to ensure that they are prevented.
Disagreements over rent
Rent is fundamental to a successful commercial landlord-tenant relationship. The landlord must feel like the deal is worth their while in terms of profit, while the tenant should not feel like they are paying over the odds. This can be a hard balance to strike, and disputes tend to arise when one party feels that they are getting the rough end of a deal. One way that commercial landlords can prevent such disagreements is by including a rent review clause in the lease so that they can ensure the arrangement remains profitable over the years.
Who carries out repairs
Property maintenance is another frequent source of tension between commercial landlords and tenants. The tenant will be using the property on a daily basis, and the landlord has an obligation to ensure that it is safe externally and adheres to any relevant building codes. At the same time, the tenant should not cause damage to the property that goes beyond routine wear and tear. Where one party feels that the other has not stood up to their end of the bargain, lengthy disputes can occur.
A commercial lease could be in your best interests, as long as the agreement is watertight. If you find yourself in a dispute with a tenant, remember that you are legally protected in a number of ways.