Property Management Services-Need To Consider When You Want To Terminate A Lease Before Time

When you own commercial property for rent, you might sometimes run into conflicts with your tenant. These conflicts might arise from various situations. A reason might be that your tenants have been failing to pay their rent regularly or there might be non-compliance of lease terms. Whatever the reason, you might realize that evicting your tenants is a far more profitable option than bearing with them. In such a situation, you must remember that you and your tenants are bound by a lease and eviction is not possible without inviting legal complications.

A standard lease for any commercial property lease is balanced and upholds the rights of the lessor. It allows the landlord to terminate the lease, albeit, under certain conditions. Here are five things you need to consider before you decide to terminate a lease before time.

1. Leases are legally binding agreements

The lease you had signed while renting your property is a legally binding agreement. If you decide to terminate it before time, you must be prepared to face legal consequences if your tenants raises valid issues in court. You must be ready with reasons for wanting to abandon the lease, such as non-payment of rent or serious misconduct by your tenant.

2. Issue notice before tenants file bankruptcy  

It is mandatory to issue a three-day notice to your tenants demanding due payment from them. The notice must be issued before your tenant files a suit of bankruptcy at the court. If the bankruptcy suit is accepted, your tenants will receive a stay order and you would not be able to issue any eviction or lease termination notice, until the court allows. Real Estate Property Management service firms can help you navigate this situation with care and caution. 

3. You need back-up tenants

You must consider the fact that evicting tenants will result in a vacancy, which will hamper the financial situation unless you find new tenants. It is always advisable to entrust a real estate management service with finding new tenants before you terminate a lease, in order to minimize the losses and costs of maintaining an unoccupied property.

4. Consider humanitarian grounds

Although the discretion lies with you, a certain amount of goodwill is expected from you in the industry. If your tenant request you to consider non-payment of rent for a few months due to unforeseen circumstances, it is expected that you give them some time before taking a strong decision. This would definitely leverage the goodwill of your business.

5. Subletting is an option which demands your nod

Your tenants might propose that you recover due rent by letting them sublet a part of the leased space. If subletting was not considered during the preparation of the lease, you still hold the power to introduce the clause in the lease. If subletting was already a clause in your lease, then the decision might be easier to make. 

It is always advisable to let a reliable real estate management company assist you in dealing with issues of rogue or bankrupt tenants and lease termination.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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