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Contract disputes can be avoided with lease negotiations

Many business owners in Orlando choose to rent office space instead of buying property. There are pros and cons to both buying and leasing, but leasing is certainly a popular option for people who favor a less permanent arrangement.

Leasing is not without problems, however. Depending on the length of a lease, there are several issues that can come up and spark a dispute between tenants and landlords. In many cases, these disputes need to be resolved through mediation or litigation, but because of how complicated and costly these methods can be, it can be wise to try and address potential disputes before they even come up. This can be done when parties are negotiating the lease prior to signing it.

Commercial lease agreements can vary considerably and often go through significant discussion and deliberation by both sides before being signed. There are a number of factors that must be considered and in many cases, negotiation is all but expected.

For example, landlords may be more willing to lower the rent for longer lease terms. Tenants may be willing to pay more for a highly attractive location. Both sides generally understand their obligations in terms of payment. However, there are several issues that can and do arise during the life of a contract that people may fail to discuss in the lease.

Some issues that can often be hashed out in a lease agreement include:

  • Specifying what the leased space can be used for
  • Assigning penalties for late or non-payment
  • Identifying the party that will be responsible for repairs and updates
  • Establishing clear timelines for when the lease terms will be in effect
  • Setting guidelines for how property damage will be repaired or paid for
  • Defining the grounds on which a tenant can be evicted

These are some of the common problems that come up after a lease has been signed. In cases when they are not defined or discussed in the agreement, it can be very difficult to resolve them.

However, property owners and tenants can work with attorneys to review and negotiate a commercial lease before signing. By having a legal perspective, both sides can pursue a fair and effective lease agreement that can minimize future complications.

Source: FindLaw.com, "Negotiating a Lease for Commercial Real Estate," accessed on July 1, 2015

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