Feature Articles

Get 14 Lease Protections When Letting Tenants Install EV Charging Stations

January 27, 2023    

Jump-start your leases to prepare for tenant demand and legal compliance.

 

With electric vehicle (EV) purchases on the rise, a new fixture has begun to appear in the parking lots of office buildings, shopping centers, medical facilities, and other commercial properties...

Don't Let Consent to One Assignment Become Carte Blanche for Future Assignments

January 27, 2023    

Boilerplate language requiring tenants to get your consent to assign the lease may not be enough to guarantee your right to consent to future assignments. Thus, in saying yes to a lease assignment, you may be inadvertently consenting to all of the subsequent assignments that the assignee chooses...

Make Tenant Complete Monthly Sales Report Form to Ensure Full Percentage Rent

December 22, 2022    

Percentage rent tenants are typically required to give landlords the monthly sales reports they use to calculate their percentage rent. All too often, though, the tenant provides only its gross sales figure—the amount on which percentage rent is calculated under the lease agreement. It...

Don't Let Exercise of Purchase Option End Tenant's Duty to Pay Rent

December 22, 2022    

Do you grant your tenants the option to purchase the leased premises? If you’re using a standard lease form to provide such an option, you might also be inadvertently giving the tenant an unexpected windfall: one or more months of free rent in the months after it exercises the option. Here...

Avoid 4 Costly Pitfalls When Allocating Lease Insurance Duties

November 29, 2022    

One of the few positives to emerge from the pandemic for commercial leasing was how it got landlords and tenants to set aside historical mistrust and work together for their mutual welfare and survival. While the pressing issue at the height of the COVID-19 crisis was restructuring rent...

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...

Cut Losses on Office Tenants' Early Lease Termination

October 24, 2022    

Working from home and other post-COVID business realities have made many office tenants reluctant to sign a long-term lease. One way to overcome this is by offering tenants the option to terminate the lease early if the rent becomes unaffordable or the space becomes unnecessary. But while...

Get 7 Lease Protections When Making Tenant Responsible for HVAC Maintenance

September 23, 2022    

It costs a lot of money to maintain a heating, ventilating, and air conditioning (HVAC) system. There’s also a lot at stake. Keeping the HVAC system humming is crucial to maintaining comfort, ensuring air quality, and, in some cases, preserving tenants’ stored inventory. Accordingly...

How to Deal with Retail Tenant's Demand to Exclude Bad Debts from Gross Sales

September 23, 2022    

When negotiating a percentage rent lease, don’t be surprised if a retail tenant demands that you exclude bad debts from the formula for calculating gross sales. This is hardly an unreasonable demand. After all, why should the tenant have to pay percentage rent on customer receivables that...

Get 12 Lease Protections When Allowing Tenants to Keep Pets at Your Property

August 29, 2022    

Pet rules in a commercial lease? At first, I thought this was a terrible idea for an article. After all, the vast majority of commercial landlords in the U.S. don’t permit pets on the property—to the extent they even consider the issue at all. And it was for that very reason...

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...

Keep Guarantor Liable for Tenant’s Renewal and Holdover Defaults

August 29, 2022    

In many states, the lease guaranty ends when the underlying lease ends. So, unless there’s language to the contrary, the guarantor is off the hook if the tenant holds over after the end of the term or renews the lease. That leaves you holding the bag for any tenant defaults that occur...