Despite protecting yourself from costly litigation by using an indemnification clause in your leases with tenants and reducing your exposure to personal injury lawsuits by properly maintaining your center or building, you may still be on the hook for an accident, unless you’re...
If you defaulted on the mortgage loan for your office building or center because a major tenant didn’t pay its rent, leaving you short of money to make a loan payment, it seems only fair that the delinquent tenant should have to reimburse you for the loan-related damages you had to pay to...
It’s preferable to not give a tenant a “performance kickout right”—that is, a right to terminate the lease if its gross sales during a certain period fall below or don’t reach a certain dollar amount. That’s because terminated leases don’t generate...
Letting a business use a portion of your outdoor parking lot can be an innovative way to earn additional revenue and boost traffic at your center. While business-related activities, such as book sales, car sales, and boat sales seem to be a relatively quick and easy way to bring in more cash and...
Before you rent space to a labor union tenant, make sure that you’re willing to agree to lease requirements that are unique to that type of tenant. Here are examples of what to expect during lease negotiations:
If a prospective tenant asks to rent space in your center beginning on a day past the first of the month, you should prorate the rent for the remainder of the month. Spell this out in the lease carefully. Otherwise, you and the tenant could end up in a dispute over which calculation method to...
Under certain circumstances, you could get stuck with a big bill for a brokerage commission or transfer taxes if your tenant assigns its lease or sublets its space. For example, you may have a listing agreement with a broker that entitles it to a commission for any transaction involving your...
If your lease with a tenant that’s making improvements or doing other construction in its space requires the tenant to give you documents—a certificate of occupancy from your local government, contractor affidavits, or lien waivers—to prove that the work was done properly, you...
When you buy an office building or shopping center, don't rely on the prior owner's space measurements when you set your tenants' rent. Always remeasure each tenant's space, and then use your measurements to calculate the rent before you negotiate a new lease. Otherwise,...
It's important to make your notice to a tenant valid if your attorney sends it. If a tenant violates your lease, you're probably required to notify the tenant in writing that if it doesn't cure—that is, correct—the violation by a set deadline, you can take action against...
When describing management fees that you'll pass through as a CAM cost or an operating expense, don't depend on synonyms for “manage” or “management” to convey your meaning. If you use only the words “supervise and administer” or “supervision and...
Make sure that your property manager is vigilant about keeping maintenance and inspection records. They can help you refute claims made by your tenants or their employees that you or your management staff knew about a dangerous condition at your property and failed to fix it.
