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While each lease is different, COVID-19 generally doesn’t excuse tenants’ duty to pay rent. But, in times of pandemic, having the lease on your side may not count for much. The simple fact is that for many landlords, strict enforcement of lease rent obligations is not a realistic option; it might even be illegal under the emergency decrees of some jurisdictions. That’s why rent relief has become the order of the day in so many parts of the country.
We’ll look at three coronavirus scenarios and the lease clauses you can use to address them.
The coronavirus has taken the world by surprise. And that includes commercial landlords and tenants. But there’s a big difference between lack of warning and lack of preparation. And you may be more prepared than you realize. Thus, while it may be too late to incorporate coronavirus protections into your existing leases, there’s still time ...
We’ll give you seven lease protections against liability for “contributory infringement.”
Big fashion houses and producers of luxury goods have found a new and effective way to combat counterfeiting: Rather than chase after the small-potatoes vendors that sell counterfeit goods, sue the deep-pocket landlord of the property where the sales occur. And even if landlords had no direct involvement in the illicit sales, they...
Giving tenants construction allowances to make improvements to the property exposes you to legal risks. If the tenant doesn’t pay its contractors, they may try to collect the debt from you, which can include placing a mechanic’s lien on the property. True, most leases expressly ban tenants from letting their contractors place a lien on the property and stipulate that the landlord isn’t liable for the tenant’s debts to its contractors.
In many states, tenants who are in default of their lease can avoid immediate eviction by getting a court to issue an order granting them a temporary reprieve to cure the problem. These orders, called “Yellowstone Injunctions” in New York, are supposed to be a last resort measure that courts issue in the interest of fairness so that tenants who are ready, willing, and able to cure their violations can rescue their tenancy.
Although just about every lease has one, the condemnation clause is often overlooked. That’s understandable. After all, when landlords and tenants sit down to negotiate a lease, the possibility that the property will be condemned during the lease term is probably the furthest thing from their minds. But every once in a while, it does actually happen. And on those occasions, the parties are usually taken by surprise. Only upon receiving notice of condemnation do th...
If you’re going to get into a dispute with a tenant, chances are it’ll happen during the move-in or move-out process. While stress is an inherent part of moving, you can go a long way toward preventing disputes and minimizing disputes by getting the tenant to agree to clear moving rules and procedures.
Offering tenant improvement allowances (TIAs) is a great way to attract and retain small and new businesses that can’t afford the renovations they need to open shop. But it can also backfire if the tenant defaults before moving in or generating the revenues necessary to pay you back. TIAs also expose you to financial and liability risks. Negotiating the right TIA lease clause is crucial to avoid getting burned.
It’s among the least appreciated parts of the lease. But while rent, renewal, and other business terms command most of the attention, the so-called force majeure clause takes center stage when disasters occur. It’s at that point that both landlords and tenants recognize the importance of the clause and kick themselves for using generic boilerplate language rather than making the effort to negotiate a force majeure clause that makes sense for their particular...
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