All too often we come across cases where poorly drafted leases come back to bite the property owner/landlord. Here are five of the most common errors made with commercial property leases.
- Rent review clause: Something that should be in all long term commercial property leases. Without it, or improperly worded, a landlord is likely to get tied into a long-term lease without the ability to periodically increase rent.
- Repair and maintenance obligations: Another common dispute that arises relates to who is responsible for maintaining and repairing the whole or part of the property.
- Forfeiture: If tenants fail to pay the rent or breach other obligations, the landlord’s right to forfeit should be expressly set out in the lease document.
- Security of tenure: Can the tenant remain in the property and request a new lease? This involves a formal procedure which many property owners do not know how to conduct correctly without legal advice.
- Legal fees and other costs: To protect against incurring unnecessary or unwarranted costs, commercial landlords must have the wording watertight within the lease. It is all too easy for property disputes to arise through poorly drafted or missing clauses within the written lease. Landlords should always ensure that proper legal advice is sought before entering any lease. Lease management and coordination become highly important if you are to maintain great tenants. Contact us and set up a time to discuss your leases before the tenant signs on the dotted line.