Traps to Avoid

Don't Assume Personal Guaranties Continue After the Lease Is Renewed

September 17, 2019    

When you renew a lease that includes a guaranty from the tenant’s business principal or another third party, you might assume that the guaranty will automatically continue into the renewal term. But if you don’t get the guarantor to sign off on the renewal lease, you may be unable to...

Agreeing to Agree Isn’t Enough to Lock in a Lease Renewal

June 6, 2019    

It’s hard to determine today how much rent to charge a tenant for a lease renewal (or extension) that won’t happen until years later. It may be tempting to skirt this problem by providing for the renewal at an unspecified rent “to be negotiated” or “agreed to...

Don't Assume Anticipatory Breach Just Because Tenant Vacates

May 20, 2019    

The rule of “anticipatory breach” gives you the right to take immediate legal action against tenants that no longer intend to fulfill their remaining obligations under the lease. The catch: The tenant must make it crystal clear, whether by words or by actions, of its intent...

Avoid Seven Traps that Trigger Constructive Eviction Claims

April 22, 2019    

When you sue tenants for not paying rent, there’s a pretty good chance they’ll counter with a “constructive eviction” claim. The argument: We don’t owe you rent because you constructively evicted us. To win the claim, tenants must prove that you did (or...