When you're negotiating a lease with a strong tenant that wants an exclusive to sell certain merchandise at your center, it may demand that you agree not to rent space to any other store that has a “department” selling the prohibited merchandise. If you agree to this restriction...
Tenants sometimes complain that they don't receive notices sent by owners, which can lead to arguments if they lose valuable lease rights or options, or wind up defaulting on their leases because they didn't know that their owners were trying to contact them. This doesn't affect only...
Before you sign a lease, have a local attorney review it. Since real estate laws aren't uniform among the 50 states, it's important to consult an attorney who can practice in the state whose laws will apply to the lease. Otherwise, you risk getting burned by unfamiliar state laws—...
Don't agree in the lease to maintain your building at the same level as other “comparable” buildings or centers in your area. Instead, specify these buildings or centers by name and address. Otherwise, if the tenant claims that your building isn't being maintained adequately...
If your lease requires the tenant to give you proof that it has the necessary insurance policies, don't accept the tenant's proof by fax. That's because it's easy for an unscrupulous tenant to “create” the required proof by cutting and pasting documents together, then...
When drafting leases or lease amendments, use the terms “landlord” and “tenant,” rather than “lessor” and “lessee,” to avoid confusion, suggests James V. Persino, a Chicago-based commercial property developer. It's difficult to confuse or...
You may be negotiating a lease with a tenant that plans to operate a restaurant it considers “upscale.” And this tenant may demand that you give it an exclusive that restricts you from renting space in your center to any other “upscale” restaurant. But if you agree to bar...
When drafting your leases, put all definitions of lease terms in one place, such as a glossary at the front of the lease or an index. This should help make your leases easier to read and understand.
Don't assume that the tenant—and not you or your property manager—is responsible for providing safety devices, such as ladders, to contractors that tenants have hired to do work at your building. If your state law allows you to designate in the lease that the tenant has this...
Even if you believe your municipality is responsible for maintaining the sidewalk outside your building, it's a good idea to keep the sidewalk in a reasonably safe condition for pedestrians and exercise “reasonable care” to guard them from injury. An injury on the sidewalk may...
If you don't maintain any control over your property, don't assume that fact will shield you from liability for an accident. It is uncommon for out-of-possession owners to win liability cases with this argument. For example, if you are aware of a dangerous condition or there is an...
Be especially diligent about maintaining and repairing elevators in your building. Accidents caused by malfunctioning elevators may expose you to greater liability than typical accidents on your property. That's because the “reasonableness” standard doesn't apply; rather, a...
