As a landlord, understanding your leases and their provisions could go a long way in managing your real estate portfolios. It is also the key to maintaining your relationship with your tenants and avoiding costly disputes.
Here are some of the common commercial lease disputes between landlords and tenants.
Ensuring that everything is in perfect working condition is critical for renting property. Usually, the lease specifies and allocates maintenance and repair obligations between landlord and tenant; however, there are instances where the lease is silent regarding the matter. It often results in disputes which could quickly lead to litigation.
Non-payment of rent is another root of disputes, and late fees ensure tenants pay rent on time. Though it may seem like a good idea to charge high late fees, landlords should think twice before doing so. State and federal laws limit the amount a landlord could impose on a delinquent tenant, and violating such laws could result in hefty penalties.
Renewal options also cause disputes between landlords and tenants. Often, tenants forget specific procedures, like sending a notice within a requisite period to the landlord, which waives their right to renew. Other times, the provision explaining the method used to calculate the rent for the renewal period is too vague, resulting in disagreements. Such a scenario could entail the loss of tenants and valuable time otherwise spent prospecting replacements.
Staying on top of all your leases could be a time-consuming and tedious task. Hiring a dedicated team of lease administrators could prove to be a valuable strategy in ensuring that all your leases remain organized and updated. To add further, a different set of eyes gets to comprehensively review your leases, thus mitigating the risks associated with lease disputes.
Contact the experts at Eximius BPO, a leading provider of lease administration services.