Consumption and Real Estate
What rights do I have for commercial leasing?
Question : What rights do I have for commercial leasing?
I signed a 5 year commercial lease and after 3 months in business I was forced to close it. The market wasn’t really good for my business here or maybe it was just a wrong time to open a business in this economy.
I would like to know if I have any rights that can protect me from not paying the whole remainder of the lease. I do not have corporation and it’s under my name. I am afraid they might put a lein into the house that I own which my parents live in.
One other thing I thought it was strange is that they never asked for my social security, driver license, tax id or even any financial statements. All they asked for is who will be on the lease and the name of business. The company I leased it from seems like a big property management.
Well that’s sums it up. I am not sure what to do and I can’t afford to pay the remainder of the lease or even pay the rent till they find someone to sublease. Any advice would surely be appreciated.
Thank you
commercial leasing companies
Best answer:
Answer by PelMel
Look at the terms of your lease. It’s likely that you are responsible for the full value of the lease, no matter your circumstances. That doesn’t necessarily mean that they will sue you and put a lien on your house. It’s best to be honest with them, let them know as soon as possible that you won’t be able to pay, and then work with them and hope for the best. If they sue you, it would be smart to get a lawyer. Sorry and good luck.
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#2 written by Patrick 1 year ago
A commercial lease is a contract, and you are responsible for holding up your end of what you signed. That doesn’t mean that you will likely have to pay the total rent for the remaining 57 months. Be honest with the management company, and do whatever you can to help them lease the space again to someone else. You should explain your situation, move all of your stuff out of the space, and offer to pay them a listing fee to market the space. You will end up spending some money, but if you do end up in court, a judge is going to interpret your actions. If you are making clear, pro-active and good faith efforts to solve the problem, that should count in your favor with any judgement.
Summary:
1) Explain your situation and be honest
2) Do what it takes to help them find a new tenant. Pay them a full listing fee and bend over backwards to help out.
3) Make EVERY effort to stay out of court. You broke the contract, and a court directed solution is likely the most expensive one. -
#3 written by Landlord 1 year ago
Commercial real estate offers no tenant protections. You made a business decision and signed the lease. It is binding and you are correct, they can very easily collect the money you owe them. The fact that you are no longer in that business has no effect on your lease contract.
You might want to help them find a new tenant.
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