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Commercial leases are scary one sided contracts that usually give all the legal protections to the landlord and seemingly few legal protection to the tenant. In my opinion, the biggest risk to small business owner tenants under a commercial lease is that the business will fail and the tenant's personal guarantors are stuck having to pay the rent for the rent term. Sure, landlords are supposed to mitigate by looking for a new tenant to take over the space, but this can drag on for a long time, the commercial lease often allows the landlord to charge the tenant's personal guarantor all of the re-letting costs, and this bill can goes sky high. In some cases, the business owners are forced to file for bankruptcy.
These are big risks and business owners should try to mitigate these risks by lawyering up when they are about to enter into a commercial lease. Contact Mark D. Walters Comments are closed.
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