If you can no longer afford your rent payments for the commercial property you are renting to run your small business out of, you aren’t alone. Between the COVID-19 virus shuttering businesses for several months coupled with the fact that more and more people are now turning to online stores to shop, it is understandable that you can no longer keep your storefront open. Unfortunately, when you sign a commercial property lease with a landlord, you are typically required to pay for the months you agreed to rent the property out for.
For example, let’s say you signed a three-year lease agreement, but it has only been two years into your lease. Under most circumstances, you are still required to pay the remaining 12 months of rent unless you and the landlord worked out your own agreement for what you would be obligated to pay given you decided to terminate your lease early. There may also be other circumstances that would allow you to break your lease early which should be outlined in your lease agreement.
Reviewing Your Commercial Lease Agreement
One of the things that should be addressed in your commercial lease agreement is what happens when you (the tenant) terminates your lease early. It may also outline the different options that are available to you in the event you no longer wish to rent the property but are still under the lease. One suggestion the Transactional Law Clinics of Harvard Law School provides is to check your lease to determine if you hold the right to sublet to another business owner. If your lease agreement allows it, you may be able to have another business owner take your place and have them take over the rent payments.
If this is an option for you, you need to check your lease to determine what your landlord’s requirements are before you make any agreements with another business owner.
Another section of the lease agreement you are going to want to review is the termination provision. The Transactional Law Clinics of Harvard Law School says you are going to want to “determine if, when, and for what reasons you are allowed to terminate the lease. If so, how far in advance must you notify your landlord before termination?” It is extremely important that you adhere to the lease agreement as your landlord could potentially take you to court for any unpaid rent payments and additional fees they incurred.
Anytime a business owner is looking to break a commercial property lease, they should consult with an Orlando, FL commercial real estate lawyer to learn more about their rights. Aside from explaining this, the Orlando, FL commercial real estate attorneys at Legal Counsel P.A. can help you make an informed decision on what to do when you can no longer afford to pay the rent for the commercial property you were renting.
Legal Counsel P.A. has an office in Orlando which is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]