Drafting Tips

Get Right to Take Direct Legal Action Against Defaulting Subtenants

March 29, 2024    

Allowing tenants to sublease the property they lease from you to third-party subtenants over whom you have no direct control carries a degree of risk. Since you don’t have a direct contract with the subtenant, you may be dependent on the tenant to enforce the terms of the sublease and have...

Give Desirable Tenant Early Termination Rights for Noxious Odors

February 27, 2024    

But set clear limitations.



Commercial leases typically require tenants to refrain from creating nuisances that interfere with other tenants’ use and enjoyment of their property. The problem is that “nuisance” is often in the eye of the...

Get Right to Use Base Year Tax Reductions to Calculate Tenants’ Tax Increase Payments

January 30, 2024    

Like many landlords, your lease may contain a tax escalation clause requiring the tenant to pay its share of any real estate tax increases that occur during the lease term. These increases are often measured off a base year, typically the first year of the lease. However, pegging future tax...

Get Right to Change Use of Specialty Building or Center

November 28, 2023    

Don’t get boxed in by implied use restrictions.



Charge Tenants a Fee for Processing Their Assignment & Sublease Requests

October 24, 2023    

If tenants don’t have to pay fees, they’re more apt to flood you with requests.



Give Tenants a Limited Deadline to Sue You for Lease Violations

September 27, 2023    

Grudges are part of any personal or business relationships. It’s a lesson that most landlords learn when tenants bring or threaten lawsuits over old grievances in a bid to get out of their lease, stall an eviction, or otherwise increase their leverage over you in a current dispute....

Set Conditions Before Letting Tenants Pay Rent by Electronic Deposit

June 26, 2023    

Unlike so many other aspects of the commercial leasing business, methods of paying rent haven’t changed all that much over the years. The majority of tenants still mail out their monthly checks to the landlord. However, a growing number of businesses prefer to remit their rent...

Get 3 Protections When Letting New Tenant Keep Furniture Previous Tenant Abandoned

April 26, 2023    

In these hard economic times in which so many businesses are being forced to shut down, it’s not unusual for commercial tenants to vacate their leased space without warning and leave all of their personal property and furnishings behind. In addition to losing a tenancy, landlords then face...

Get 5 Key Protections When Transferring Construction Warranties to Tenants

November 29, 2022    

It’s a common scenario that’s likely to arise any time a landlord hires outside contractors to carry out substantial improvements on a tenant’s premises: The tenant requests that the landlord “transfer” any construction warranties that the tradespeople may have...

Ensure Percentage Rent Flow When Tenant Assigns or Sublets

August 29, 2022    

Percentage rent is typically based on the gross sales generated from the leased space rather than a tenant’s gross sales. So, an assignment or sublet by a tenant with strong sales to a business with weaker sales could take a significant bite out of percentage rent. You could even end up...

Lease Guaranty vs. Suretyship: What's the Difference & Why It Matters

July 20, 2022    

There are some tenants that you know will have the assets necessary to pay their rent every month. And then there are the more financially risky ones. When leasing to these businesses, it’s advisable to get a more financially stable third party to sign an agreement backing the tenant...

‘Best Efforts’ vs. ‘Commercially Reasonable Efforts’: What the Difference Is and Why It Matters

February 20, 2022    

Chances are, your standard lease form includes one or more provisions requiring the tenant to exercise some kind of “efforts” to achieve a desired but uncertain result or outcome.