As a commercial landlord, it can be difficult to navigate real estate contracts. The legal landscape is always changing, and the intricate provisions make it challenging to ensure that all parties are in agreement.
Here are some of the most common commercial real estate issues and how you can handle them.
A tenant will not move out on time
A tenant may need to use your property for a longer time than they originally intended due to business changes. A new tenant can cancel their contract if the other person has not moved out on time, so you must prepare for this type of situation. Review the lease agreement to see if there are any provisions you can enforce.
The tenant has damaged your property
Tenants often cause some damage to commercial property over time, especially when it comes to industrial buildings and restaurants. If this happens, you can withhold your tenant’s security deposit as long as you provide them with an itemized list of the repairs within 45 days after they move out. Keep in mind that if the tenant paid a surety bond premium, that credit cannot cover the damages.
The provisions are not in writing
In Maryland, you and your tenant may verbally agree on the rental’s terms, without any written provisions, if the lease is for less than a year. However, it can be very hard to settle disputes when nothing is on record. This is why you should document every agreement, no matter how insignificant it may seem.
Dealing with real estate contracts can be a challenging and stressful process, but you have to approach it with the right mindset. This means being patient, thorough and willing to compromise when necessary.