A commercial lease outlines the expectations and obligations of a tenant and landlord. A lease can outline what a business can do to a property, how long the lease lasts and whether the landlord or tenant is responsible for utilities, for example.
One of the biggest issues landlords face when leasing commercial properties to businesses is contract breaches. A contract breach occurs when a tenant violates an agreement, resulting in financial losses or damages. The following are a few common contract breaches that may occur when leasing a commercial property unfolds over time.
A tenant does not pay rent
Tenants are responsible for making regular payments when occupying a commercial property. A lease should outline the exact amount a tenant is expected to pay and when the payments are due. A tenant who fails to make regular payments to use a commercial property may face late fees or other legal issues.
A tenant is not maintaining or repairing a property
A business may be responsible for making certain repairs, alterations and maintenance when using a commercial property. This may include repairing certain features or rewiring lights and plugs. A commercial lease may outline what alterations a business can make to a property and whether they are responsible for repairs. Failing to make repairs – on the part of either party – may violate a lease.
A tenant is subletting without permission
Typically, a tenant cannot sublet a commercial property without talking to a landlord. A tenant who has sublet a property, risking damages and creating liability issues for a commercial property.
There are several possible remedies to a contract breach. A tenant may, for example, be responsible for paying overdue rent. Or, a tenant may be held liable for damages. Landlords can explore their legal options after a commercial lease violation to learn more.
