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Common commercial lease agreement disputes

On Behalf of | May 23, 2024 | Real Estate Law

Commercial lease agreements are important for businesses, providing the space they need to operate. But sometimes, disputes can arise between landlords and tenants.

Common issues in commercial lease disputes

One common issue in commercial lease disputes is disagreements over rent. This can include disputes about the amount of rent when it’s due, or unpaid rent. Sometimes tenants face financial problems that make it hard to pay rent on time.

Another common problem is maintenance and repairs. Disagreements can happen over who is responsible for fixing things. Lease agreements should clearly define who takes care of maintenance and repairs, but sometimes the terms are unclear, leading to disputes.

Lease renewals and terminations also cause issues. Problems can arise when it’s time to renew or end a lease. These disputes may involve the notice period needed, conditions for renewal, or disagreements over ending the lease early.

Property modifications can lead to conflicts, too. Tenants might want to make changes or improvements to the space, which can cause disputes if the lease does not clearly state the rules for making such changes.

Disagreements can also occur over how the tenants use the property. Tenants might use the space in ways that are not allowed by the lease, leading to conflicts with the landlord.

Legal remedies for resolving disputes

There are several ways to address commercial lease disputes. Leases are covered under Chapter 1310 of the Ohio Revised code. Many disputes can be solved through negotiation or mediation, where both parties discuss their concerns and seek a solution. Mediation involves a neutral third party who helps facilitate the discussion.

Arbitration is another option. This is a more formal process than mediation, where an arbitrator listens to both sides and makes a binding decision. Many commercial leases include arbitration clauses for resolving disputes.

Litigation is another method. This involves taking the dispute to court, where a judge will make a decision. Litigation can be time-consuming and expensive, so it is often a last resort.

Both parties should carefully review the lease agreement to understand their rights and responsibilities.

Navigating commercial lease disputes

Commercial lease agreement disputes can be challenging, but understanding common issues and available legal remedies can help resolve conflicts effectively. By knowing what steps to take, landlords and tenants can address disputes and maintain productive relationships. Ensuring clear lease agreements and open communication can prevent many disputes from arising in the first place.