Protect Your Interests When Leasing to Foreign Tenant

August 25, 2016

Sometimes, leasing space to a tenant that is not a U.S. business or individual is profitable and the right choice for your property. But there are several key considerations that need to be addressed ahead of time in order for you to be protected in the event that things don’t work out in this type of scenario. Make sure that before you sign a lease with a foreign tenant you discuss with your attorney:

  • The sufficiency of U.S.-based assets. Confirm that your prospective tenant has sufficient assets within the United States to comply with payment provisions, as well as to satisfy a judgment.
  • A guarantor requirement. Preferably, the tenant can provide a U.S. guarantor, but if a non-U.S. entity or individual is the only available option, be sure to confirm that the guarantor has sufficient assets in the United States.

For additional items that are crucial to a deal with a foreign tenant, see “Leasing to Non-U.S. Tenants: Protecting Against Default and Ensuring Enforcement,” available to subscribers here. 

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