Although an executed commercial lease should provide you with some sort of comfort and stability, the truth of the matter is that tenants breach their lease agreements all the time.
If this has happened to you, then you might be wondering about your next steps and how you can recover any financial losses that have been dealt to you. We hope this post provides some insight.
Your options when a commercial lease is breached
If a tenant breaches a commercial lease, then you have three options.
- Deem the lease terminated and reclaim possession of the property for your own use.
- Act as an agent of the tenant to try to re-lease the property in hopes of recovering any lost rent due under the lease agreement. You can then follow up with a lawsuit to claim any rents that weren’t recovered by re-renting the premises.
- Allow the tenant to remain on the premises but file a lawsuit for any rent owed or to accelerate any of the lease terms.
It’s important to remember that a tenant can escape accountability for any future rent owed if it surrenders the property to you.
To avoid being cut off from that income, option two above may be your best bet. However, it really depends on the circumstances, and you have to know how to navigate the law to your advantage if you want to be successful in recovering the money that is owed to you.
Don’t lose out on the funds that you’re owed
There’s a lot of money involved when you’re dealing with commercial real estate leases. That’s why you need to put in the work necessary to protect your interests when real estate disputes arise pertaining to these matters.
Experienced real estate attorney help property owners with a wide variety of legal challenges.