Feature

Use Lease to Manage Liability & Financial Risks for Mass Shootings & Terrorist Attacks

January 23, 2020    
We’ll give you 10 tips for minimizing liability risks from shooting sprees and terrorism.  
Winners & Losers

Can a Holdover Tenant Claim Constructive Eviction?

January 23, 2020    
The tenant’s right of quiet enjoyment lasts for as long as the lease remains in effect. If the landlord does something to interfere with that right, the tenant is entitled to vacate and stop paying rent on the grounds of constructive eviction. But what happens when the original lease expires...
Traps to Avoid

You Can Lose Rent Escalations If You Take Too Long to Bill Them

January 23, 2020    
Whether out of neglect or clerical error, you may forget to invoice a tenant for a tax escalation or other charge it owes you. Or, if the tenant is struggling, you might decide to keep the bill in your back pocket and wait for its finances to improve. In either case, you’re taking a risk. The...
Owner Wins

Lease Clearly Shows that Landlord Owns Tenant Improvements

January 23, 2020    
What Happened: Erection of a reception desk and bar fixture containing sinks for mixing hair color were among the improvements made at the landlord’s expense before a hair salon tenant moved in and opened shop. The reception desk and color bar were also among the assets the tenant attempted...
Owner Wins

No Constructive Eviction Where Tenant Didn’t Notify Owner of Sewage Problem

January 23, 2020    
What Happened: After experiencing repeated problems with the building sewage system, a bank branch tenant decided to move out. In its notification letter, the tenant claimed that it was subjected to “hazardous environmental conditions”—namely, mold and sewage backup—and...
Owner Wins

Tenant's Nuisance Claim Against Owner Isn’t an Open-and-Shut Case

January 23, 2020    
What Happened: Sharing an office building with a gym where individuals and classes deliberately dropped free weights to the ground as part of their “Cross Fit” training made it hard for a tenant to carry out its radiation practice in peace. Frustrated with its failure to stop the...
Feature

Guard Against Mechanic's Liens by Making Tenant Set Up Construction Escrow

December 26, 2019    
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...
Owner Wins

How Much of Replacement Tenant’s Rent Must Landlord Offset Against Original Tenant’s Debt?

December 26, 2019    
What Happened: An auto detailing tenant acknowledged installing a parking lot area without the landlord’s authorization and then vacating with 19 months remaining on the lease. The question: How much, if any, of the rent the landlord received from the new tenant should be offset against the...
Owner Wins

Eviction Court Had No Authority to Cut Tenant’s Rent

December 24, 2019    
What Happened: After spending more than $45,000 for improvements, a tenant claimed that it discovered that the premises it leased for five years for use as a hair salon was only 452 square feet rather than the 600 square feet the landlord represented. So the tenant asked for a rent break. When the...
Owner Loses

Landlord Can't Collect Waste Damages While Lease Remains in Effect

December 23, 2019    
What Happened: A landlord discovered that a tenant had removed landscaping, added a sidewalk, and made other major structural alterations without notifying or getting the landlord’s consent as the lease required. The failure of the unauthorized alterations to meet building code, ADA, and...