Rent

Link Late Fees to Direct Deposit of Rent Payments

May 28, 2012    

Despite the growing popularity—and convenience—of using direct deposit or wire transfer (that is, depositing funds directly into another bank account), your owner could refuse to give you the right to pay your rent this way. Instead, it could require you to pay your rent with a...

Think Twice Before Withholding Rent for Minor Alterations to Space

April 26, 2012    

After a recent New York case, it may be more difficult for tenants to prevail on certain claims for rent abatement. You can no longer assume you'll be entitled to rent abatement if the owner makes improvements or alterations you haven't agreed to or that aren't mentioned in the lease...

Negotiate Provisions that Thwart Owner's Free-Rent Conditions

July 25, 2010    

Commercial property owners struggling to fill vacancies have been offering tenants free-rent concessions more readily than in the past in return for signing leases. However, owners know that giving you a period of free rent can hurt their cash flow or leave them exposed if you walk out on your...

Clarify Which Parts of Property Subject to Rent Escalation

September 27, 2009    

In a Massachusetts case decided this past June, the ambiguity of a term in a tenant and owner's lease had sparked a dispute about which parts of the leased property were subject to a significant rent escalation. Ultimately, the tenant prevailed based on the court's determination that...

Make Sure Temporary Rent Relief Exchanges Work Long Term

July 19, 2009    

The current state of the economy has prompted some struggling tenants to ask their owners for rent relief in exchange for giving back some of their lease rights. Monetary relief in exchange for these concessions may provide help for tenants in need, but it comes at a high price because it is at...

Don't Let Guarantor Get Burned by Rent Acceleration Clause

October 28, 2008    

If your lease contains a rent acceleration clause, the owner's enforcement of it could put your guarantor on the hook for a large amount of rent, says New York City attorney Nancy A. Connery. A personal guaranty could hit an individual guarantor particularly hard.

There are two common...

Ask for ‘Seasonal’ Rent During Tough Times

August 31, 2008    

If you're a retail tenant struggling to pay rent, you should ask the owner to allow you to pay rent based on a “seasonal” rent schedule, says Toronto attorney Stephen J. Messinger. Seasonal rent is a payment arrangement that focuses on your annual gross sales cycle.

What to Expect When Requesting Payout Agreement

June 30, 2008    

Depending on what kind of business you run, the slowdown in consumer spending could be directly affecting your bottom line—which may make dealing with unexpected increases in year-end operating expenses more painful than usual.

In general, most owners are also feeling the financial...

Negotiate Rent Reduction Without Giving Away the Store

April 30, 2008    

As the economy continues to slow in 2008, more tenants will be tempted, if not forced, to ask their owners for rent concessions. Luckily, when faced with these unpopular requests, “most property owners and management companies are pretty practical,” says Sacramento, Calif., real...