What are the signs of a bad commercial lease?

Leasing commercial property is a great way to grow your business. When entering into a commercial landlord/tenant agreement, your lease will be the blueprint between you and the property owner. A good lease will offer protection to both parties, while also providing guidance in the event disputes arise.

However, not all commercial leases are in your best interest. Forbes lists some clauses and language to look out for if you want to protect your investment. In the very least, these clauses require clarification, or modification if you believe they will adversely affect you down the road.

Provisions that favor only one party

Leases are supposed to favor both parties equally. Provisions that offer benefits only to the landlord – or worse – can be construed as detrimental to you, are clearly not in your best interest. If one such provision exists in a lease, it is likely that the document was designed to favor the property owner and not the tenant.

Vagueness surrounding obligations

Both you and the property owner will have certain obligations when it comes to the commercial property. These obligations and responsibilities must be explicitly stated, otherwise disputes are bound to occur. When they are not, occurrences out of your control may become your responsibility. As a result, you may face legal action for a situation that the landlord should have been in control of.

Typos and errors

While mistakes are part of being human, leases are an important legal document. Accordingly, they must be reviewed and edited diligently to ensure they are accurate and free of mistakes. Numerous mistakes may indicate the landlord is also careless in other ways, which can directly impact you should the building require repairs or maintenance.

Never let a questionable clause or provision slip by unnoticed in a commercial lease. It is best to have the document reviewed by an attorney to pinpoint any issues, so you can make the right decisions for your business.

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