Commercial leases are agreements for businesses, properties, or managing buildings, often with multiple business tenants. A commercial lease is a contract between the landlord and the respective business tenant. Unlike a residential commercial lease, the terms of the contract are often longer and with varied terms, giving both parties a greater opportunity to negotiate. Drafting up a strong contract can save you from litigation. Leases are sometimes difficult to understand and therefore, commercial lease disputes are common. Having legal experts on your side before you sign anything or to negotiate on your behalf is always a good idea.
The experienced commercial lease dispute attorneys at Stone & Sallus can represent your interest. We write leases, review preliminary leases, draft and negotiate them representing your best interest. Whether you need a short-term or long-term lease it is important to have terms that work for you. There are three type main types of commercial leases:
Net LeaseThis lease requires a tenant to pay in addition to a fixed rent, all the expenses that would usually be paid by the owner of the property.
Gross Lease (Full Service) –The tenant pays a flat rental amount while the landlord pays all the rest of the expenses that the owner would pay.
Percentage Lease– A percentage lease is when the lessee rent is permanently fixed plus a percentage of the gross volume of business, these variables can vary depending on the agreement
Possibilities for Commercial Lease Disputes
Commercial disputes are common in Los Angeles and with over 700,000 commercial properties, misunderstandings are inevitable. These buildings yield multiple tenants who sign multiple leases. There are several reasons why lease disputes occur with commercial leases:
Breach of Conditions– This can be landlord or tenant breaching their obligation/s within a lease. If proven Injured, the party may be able to cancel the lease.
Monetary issues– Financial disputes are common, including non-payment of rent.
Termination of Leases– There are two types: a) Actual eviction when the landlord removes a tenant or stranger who has superior title to the property the tenant is removed, and b) constructive eviction occurs when a landlord allows the premises to become uninhabitable or violates the covenant of quiet enjoyment.
Destruction of Premises– This involves the destruction of the leasing property this is the land that the building is constructed on, which the tenant rents. It could be the building or part of the building like a rented space.
Abandonment –In most cases, abandonment of a lessee (tenant) would still make them liable for rents due until the expiration of the lease.
In California, the court favors residential tenants, but commercial laws are different; a commercial tenant is not favored in the eye of the law. A commercial tenant, when issued an eviction notice, only has three days to comply. Remember, a lease is an agreement between the landlord/owner/lessor gives the tenant/renter/lessee the right to use specific realty for a definite period and with consideration, being the payment of rent.
Protect your rights and hire a Stone & Sallus qualified commercial lease dispute attorney to review a dispute or draft up a lease. Be confident with your commercial lease, investment, and your business decisions. We litigate and protect our clients. Speak to us in a free consultation and make sure to call before you draft or sign the lease. Los Angeles lawyers, Stone & Sallus, will represent your interest if you require representation in a lease dispute. We draft and review preliminary agreements; diligently negotiate for your best interest. Whether you need a short-term or long-term lease it is important to have terms that work for you.