What happens if I stop paying my commercial lease?

The law around the eviction of commercial tenants who fail to pay rent varies from state to state, and landlords not complying with the letter of the law can end up being taken to court by tenants. These can include late payment of rent, or if the landlord agrees to release the tenant from the lease.

How do I get out of a commercial lease without a break clause?

If there is no break clause, and the landlord is not interested in surrendering the lease, you may be able to assign it to a third party. You would need to find a new tenant yourself – one that meets the requirements of the landlord, whose consent will most likely be needed before the lease assignment can go ahead.

Can I repossess my commercial property?

Landlords of commercial property can repossess the property under Common Law by forfeiting the lease. They also have the option of removing tenants under a writ of possession.

Can you negotiate with leasing offices?

Office space is one of the largest expenses a growing company incurs. Negotiating the best lease possible can save your company enough cash to hire a few more employees or to launch a marketing campaign. Keep in mind that your ability to negotiate an office lease is dependent on how much leverage you have.

What happens at the end of a commercial lease?

A strict procedure must be followed prior to contracting out a lease, but once this has been completed, the tenant is obliged to vacate the commercial premises at the end of the term specified in the lease. The tenant also has no automatic right to renew the lease.

Can a tenant hold over a commercial lease?

You’re only allowed to hold over if your landlord has given their consent, expressly or impliedly, for you to do so. Otherwise, you’ve got to be out of there! An overholding clause states that a tenant may occupy the premises on a month-to-month basis once their commercial lease has expired.

What makes a commercial lease a protected lease?

For a lease to be protected, certain criteria must be met: The tenant must occupy the premises solely for business use The tenant must have exclusive occupation of the premises If you have granted your commercial tenant a protected lease, you cannot change the agreed rental figure without the tenant’s agreement. What is contracting out?

What happens if I can’t pay my commercial lease?

Landlords have various options to recover debt if you fail to pay your commercial lease, including: Obtaining a County Court Judgment (CCJ) against your business Forfeiting your lease and repossessing the premises Seizing business assets under Commercial Rent Arrears Recovery (CRAR) legislation

How long does a commercial lease usually last?

Most commercial leases are effective for a term of years. However, some commercial leases may run month to month, depending on availability or the seasonal needs of a prospective tenant. Be aware of the critical State of Frauds exception for oral leases of real estate with a term of one year or less.

Landlords have various options to recover debt if you fail to pay your commercial lease, including: Obtaining a County Court Judgment (CCJ) against your business Forfeiting your lease and repossessing the premises Seizing business assets under Commercial Rent Arrears Recovery (CRAR) legislation

Can a landlord exclude a commercial lease from protection?

As a landlord, you can exclude a commercial lease from protection by ‘contracting out’. A strict procedure must be followed prior to contracting out a lease, but once this has been completed, the tenant is obliged to vacate the commercial premises at the end of the term specified in the lease.

What are the dangers of a commercial lease?

Commercial Leases: 7 Dangers You Need to Look Out For 1. Not Allocating Enough Time. Conventional wisdom in the commercial real estate industry is to allow six to 12 months… 2. Insufficient Planning. Closely related to the lead time issue is the failure to adequately plan your new space. The… 3.