An experienced business law attorney in El Paso, TX can draft a commercial lease that protects the interests of both parties. Explore these six reasons to hire a lawyer to negotiate a commercial real estate lease as either the landlord or the tenant.
6 Ways an El Paso, TX Business Law Attorney Can Help Negotiate Your Commercial Lease
1. Explain Common Clauses in Plain Language
You don’t have to be a real estate expert to obtain a commercial lease that serves your interests. Your attorney will explain common clauses and stipulations in clear, understandable language. They’ll also answer any questions you have about the terms of the lease and address concerns you may have.
2. Address Ongoing Costs
Your commercial lease should detail responsibility for handling both expected and unexpected costs. Your lawyer can negotiate an arrangement that meets your needs by determining how the parties will share utilities, maintenance, repairs, and other operational expenses. For example, the lease may require the tenant to hire a cleaning service or landscaping company.
3. Establish Dispute Remedies
Your attorney will also negotiate remedies for disputes such as unpaid rent or delayed repairs. This provides a legally binding way to settle a breach in contract without the expense and time of a lawsuit. This section of the lease should also establish responsibility for necessary attorney fees in the event of a contract breach.
4. Negotiate Terms for Property Upgrades
Most business tenants make improvements to commercial spaces. The lease should establish ownership of these upgrades when the lease ends. Generally, tenants can remove equipment and fixtures added for business purposes as long as they can do so without damaging the property. They must remove these fixtures promptly when vacating the space. Landlords can legally dispose of property remaining at the unit 60 days after the lease ends.
Permanent improvements such as flooring, fences, and other built-in furnishings typically remain with the property. However, your attorney can help negotiate alternate terms for these upgrades.
5. Document Payment Terms
Your attorney can help you negotiate fair rent for a commercial property, along with terms such as when and how the tenant makes payments. This section of the lease should also establish late fees and other penalties for missed payments. The landlord and tenant should come to an agreement about the frequency and maximum amount of rent increases. Finally, negotiate the security deposit amount for the property and note what these funds cover.
6. Establish Subletting Rules
This section of the lease explains the rules about subletting all or part of the property. You may want to negotiate for a subletting arrangement if you have a large space that you can share with another enterprise. Subletting also gives the tenant a way to recoup rent rather than defaulting if they can no longer use the space.Most businesses sign long-term leases for commercial space. Working with a knowledgeable attorney can ensure that this legal contract meets your company’s needs now and in the future. Contact the Law Offices of Albert Nabhan, PLLC in El Paso, TX today to schedule a consultation.
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