Commercial real estate is not something you should take lightly, as this is an incredibly important investment. Whether you own the property and want to rent it out or you’re a business owner looking for a commercial space for your business, making decisions regarding your lease renewal or termination is an incredibly complex process. However, you should not try to navigate these matters on your own. Instead, you should connect with an experienced Austin, Texas commercial leasing lawyer. The following blog explores some of the most common issues you may have with these matters.
What Is a Lease?
A lease is a legally binding agreement that allows someone who owns a building to rent out a space in their property to another person. A lease grants both parties involved legal protections. The lease will also cover many terms and conditions of both party’s rights to the property. For example, the lease will explain how long the lease will last, who is responsible for maintenance and upkeep, and how disputes between both parties will be resolved.
What Are Issues that Can Arise With Lease Renewal or Termination?
When renewing a lease, if you own the commercial property that is leased to tenants, you may have changes you want to make to the lease. Unfortunately, this does not always go over well with tenants, especially when the change revolves around an increase in rent. However, you may find that adjusting the terms and conditions of your lease or updating the lease to reflect changes in local, state, or federal laws can cause issues to arise with your tenant.
Another common issue that can arise during the lease renewal process is asking for a renewal significantly earlier than the set renewal date. While landlords may appreciate this as it can help them plan if the other party does not intend to remain, it can make tenants feel pressured into making a decision they may not be ready to solidify.
Another common issue you may find in the event of a lease termination is that one party wants to end the lease earlier than it’s supposed to end. For example, you may find that one party is unhappy with the actions of the other, and makes a request to terminate the lease early. However, this can leave the other party in a bind, meaning legal issues can arise.
As you can see, lease renewal or terminations can lead to many issues for both parties. That’s why working with an experienced attorney is critical. Not only can your attorney help you negotiate these matters but they will also help you protect your rights during these matters. At Dillard Property Law, PLLC, our dedicated legal team will do everything possible to assist you. Connect with us today.
