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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

3 common disputes landlords have with commercial tenants

When a business entity leases a real estate property for operational use, it can lead to a unique dynamic between the commercial tenant and the landlord. While a commercial lease has many fundamental similarities to a typical residential lease, entrepreneurs might misunderstand their obligations to the property owner.

Heated disputes tend to arise due to the sensitive nature of commercial real estate law. However, tenants and landlords alike can avoid such disputes by being aware of potential pressure points.

1. Withholding rent

Any tenant understands that timely rent payments are fundamental to their lease agreement. Commercial tenants operating a business on the property might feel justified in withholding rent if they feel that the landlord is the one in breach of the agreement. The complexities of a commercial lease can give rise to such misunderstandings, but it is always important to act in good faith as a tenant.

2. Maintenance obligations

Arguments are sure to ensue when a lease contains ambiguous wording as to which party is responsible for maintenance costs in the event of property damage. In many cases, the landlord’s obligations pertain only to structural repairs.

3. Renewal costs

Savvy business owners factor in rent costs as part of their financial projections and funding strategies. When they find out that their lease does not guarantee a consistent rent obligation when it comes time to renew, an intense dispute may be inevitable.

Tenants and landlords can evade a vast majority of commercial real estate disputes by simply studying the terms of their lease agreement. In cases where the lease itself can not settle the matter, external mediation might be necessary.

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