When you don’t have an air-tight commercial real estate lease, renting your commercial property can carry with it significant risk. Florida landlords need to protect themselves against the many circumstances that can lead to legal trouble when taking on new tenants.
Want to know the best way to protect your business?
For starters, be sure to include these essential lease terms in each of your commercial rental agreements:
Including a “use restrictions” clause in your commercial lease limits how your tenant can use your property. As a landlord, you want to restrict businesses that could damage any of your other business relationships, any ongoing deals, or your property.
Let’s look at an example: say you own properties in close proximity to one another. You would want to attract a variety of businesses that promote or have little effect on one another’s business. Your lease should restrict businesses that are too similar or are in direct competition, as the fight over that niche market could damage your relationship with both parties.
Other examples of specific use restrictions might apply to businesses that could be deemed controversial or inappropriate. It’s really up to you what to include in your restrictions, but an attorney will be able to give you guidance for your specific case.
Being a landlord is a riskier business that being a tenant (you already know that, though). A breach of contract is just one way that your tenant can hurt your business financially. How do you prevent such damage from occurring?
Including a clause on remedies for various circumstances can help protect you hold your tenants responsible for those losses. Especially when things escalate to the point where the courts get involved, having a clause that addresses how legal fees, missed payments, and other things will be handled between the two parties, should they arise. Talk to your attorney to see what your remedies clause is missing.
Do your commercial leases have an indemnification clause? No? You’re going to want to start including one.
Having this clause in your contract essentially absolves you of responsibility in the event of an accident that injures your tenants or their customers (with few exceptions, such as improperly maintained property).
These tips are just a fraction of the legal language that you can use to protect yourself and your business. Your commercial rental business deserves to have the tools it needs to thrive. Only by contacting and working with a qualified commercial property lawyer can you give your business access to those tools.
If you are in dispute with your tenant over your commercial property or want to rewrite your commercial lease to include these and other clauses that protect your business, call the real estate law experts at HLF Real Estate Law. Marcia Hansen’s twenty-plus years of litigation experience includes hundreds of resolved commercial cases. Call her offices to set up an appointment to go over your commercial lease today.