Common commercial lease disputes

| Jun 24, 2021 | Real estate litigation |

When an owner of a shopping complex or building in Ohio, as a landlord or lessor, enters into an agreement with a store owner, as a tenant or lessee, both parties have certain responsibilities and obligations pursuant to the terms of their commercial leasing agreement. When a party breaches the agreement by failing to do what they agreed to, there is often a dispute between the parties. Real estate litigation often stems from a disagreement between the lessor and lessee relating to the terms of a lease agreement. Here are some of the most common commercial lease disputes.

Unpaid rent

A commercial lease will specify when rent is due and how much is owed. With more consumers shopping online nowadays, stores often have trouble keeping their doors open. Many stores are struggling financially and are unable to make the rental payments owed. Some have even gone out of business and vacated the premises months prior to the end date specified in their lease without paying rent for the months ahead. As a result, lessors often have to file a claim against the store owners for unpaid rent owed.

Property damage or modifications to property

A commercial lease often specifies that the lessor must maintain the property so that when they leave, the property is in the same condition as they received it in, with the exception of ‘normal wear and tear.’ A landlord and tenant may disagree on what is owed for property damage and repairs at the end of the lease.

A commercial lease may also specify limitations as to what modifications a tenant is allowed to make to the property. Any modifications not permitted under the terms of the lease may be a source of conflict.

Option to renew

Commercial leases give tenants the option to renew their lease after a few years. However, sometimes tenants assume their lease is renewed without properly notifying their landlords. As a result, the landlord may increase the rent owed based on fair market value, causing a dispute over the amount owed during the renewal period.

Landlords and tenants may be able to resolve their disputes without ever having to go to court. However, when both parties are unable to come to a consensus, litigation may be necessary. The help of an experienced real estate attorney can be beneficial in almost any situation.