Commercial leasing disputes in Calgary occur for a variety of reasons. This article is going to look at some of the reasons why disputes occur, and some of the most common disputes you may encounter when leasing a commercial space to run your business.
Why Leasing Disputes Occur
A dispute over your commercial lease either occurs when an issue is raised either by the lease holder or by the tenant.
The biggest problems with some commercial leases occurs with how the terms of the lease were written out. Some commercial leases are drawn up by lawyers and are full legalese. Legal language can be confusing to the lay person.
If you don’t understand what the lease is saying, find it vague and are unsure about what it means, or that it doesn’t cover some key or vital issues that relate to your business, then don’t sign it. This is you responsibility as a tenant and the onus is on you take the time you need, and the proper care before you sign.
Never rush the signing of a lease if you are uncomfortable about any portion of the lease. Take it to a lawyer who specializes in commercial real estate and lease issues. A good commercial landlord should allow a certain bit of latitude in negotiating the terms of a commercial lease.
Another good tip before you sign a lease is to talk to other tenants that either operate in the building where you plan to lease, or ask the lease holder for some references so you can find out what they like to deal with and how they handle disputes.
Commercial Lease Dispute Issues
These are some of the frequent reasons why commercial lease issues arise, and most of them can be avoided before you sign the lease by getting the potential problems clarified and spelt out clearly in the lease.
Rent
The issue of rent must be very clear. It’s a relatively simply matter. You agree to pay ‘x’ amount of dollars for a certain period of time. If rent increases are to occur, then it should be spelt out clearly in the lease about how these increases or rent changes will take place, and how and when you will be notified.
Lease Renewals
The second main leasing dispute occurs on how renewals are to occur. Make sure the contract spells out this process and get it clarified before you sign on the dotted line. Nothing can b more inconvenient than having to get in a renewal dispute just as your business begins to take hold, and you end being faced with the possibility of having re-locate the business. Remember that many terms in a lease can be negotiable.
Repairs and Maintenance
This means finding out and being very clear on who is responsible for what. If the leasing company is handling certain maintenance functions, then be very clear on what you are expected to pay. If something is in disrepair before you assume the lease, then it must be clear who will be responsible to correct the problem.
Problems also occur to when you have to have repairs within the spatial confines of your business, and who assumes responsible for certain functions of the building itself. This might be plumbing that breaks, or a leaky roof. Make sure that these responsibilities are clarified before you sign.
Summary
The best advice is to use the services of a lawyer to help guide you through the process, and to make the terms of the lease clear enough so disputes can’t arise in the first place.
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