So many details—and so much time—often go into knocking out any type of business contract, and a commercial lease can be extremely complex and full of legalities, especially if you are dealing with a business owner operating a franchise or an enterprise that requires a lot of consideration on your part as the landlord. You may have to consider numerous features, including their plans for use, any potential environmental issues, or worries about how they will fit in with other neighbors who may also be leasing from you.
Losing a Commercial Tenant Can Be Disappointing
After you have gone through such a process, it may be a great disappointment to find out that your tenant is failing to follow through with their end of the agreement and is breaking the lease. Your first move should be to consult with an attorney like Shane Coons, experienced in both business and real estate litigation. This will allow you to examine your legal options, as well as considering precisely how disappointed you really are about this loss. Can you move on quickly to getting another tenant into the space about to be vacated or is the case worth pursuing with litigation?
If the tenant is leaving without the proper notice, you may be able to compromise on some of the financial issues. This could take some negotiating, especially if their lease was for many years, keeping in mind that some commercial leases span decades. The tenant may want to negotiate by finding you a new tenant before they leave, or even offering to sublet the premises to avoid financial penalty or litigation.
Consult Your Lease for Terms of Dispute Resolution
The original lease should have had all penalties for early termination clearly outlined, as well as a clause regarding dispute resolution. In this case, you may be able to resolve the issue more quickly with arbitration. This can be especially beneficial if you are concerned about loss of income due to the loss of your tenant and need to get back on track quickly. The process can be much more affordable than litigation also. Find out more about arbitration in one of our recent blogs, ‘Business Lawsuits Today: Will Arbitration Make the Case Easier to Settle?’
Contact Us for Help Now
Whether or not you decide to speak with the tenant directly about a resolution, consult with an experienced attorney about your best course of action as soon as possible. With a broken lease and a contract on your side, you should have the upper hand regarding any negotiations.
Do you have questions about a landlord/tenant issue? If so, contact Attorney Shane Coons. Our law office represents clients involved in a wide range of businesses and legal issues, and we would be glad to review your case and help you explore your options. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.