Five Reasons Your Lawyer Should Review Your Commercial or Residential Lease
Leases are Landlord Favored – Leases are usually written by landlords or their lawyers and any provision that can be written into the lease to favor the Landlord is usually included in the lease.
Accuracy – Leases are voluminous documents that are sometimes “cut and paste” between different lease agreements. Oftentimes, the Landlord or property management companies do not carefully change all the required information to reflect your actual lease terms.
Without careful review you could be signing a document incorrectly and does not reflect your specific lease deal.
CAM (Common Area Maintenance) Fees – These apply to commercial leases. All tenants leasing in a commercial building share the cost of maintenance such as striping the parking lot, landscaping the common area, lighting, security, snow removal, etc. As a tenant you want to make sure that your CAM fees are dependent on the total rentable square feet in your lease, not the total rented square feet. The difference can mean a lot of CAM money.
Personal Guarantees – A personal guaranty eliminates any protection your corporate entity or LLC might provide against someone suing your business and attaching your personal assets. Personal guarantees are sometimes buried in a lease agreement. Beware of these and know what a personal guarantee is!
Non-Compete Agreements – As a tenant in a commercial building it is important that there is no competition. Protect your business by making sure there is a non-compete clause in your lease stating that your landlord cannot rent to your competitors.
Remember, a lease is a contract and once you sign the lease you are contractually bound to every term and provision. Make sure you negotiate and understand all the terms and conditions of your lease agreement. Call the Attorneys at Raines, Dusing & Sutton for review of your residential or commercial lease @ 859-578-6600.