Attorney for Landlord-Tenant Issues

Commercial leasing is often far more complex than residential leasing because commercial leases usually run for longer periods and are likely to include such things as provisions for adapting the property for a particular commercial purpose. Due to the long-term nature of most commercial leases and the high amounts that may be charged in rent, disputes between landlords and tenants often have significant financial implications for both of their financial futures.

While a well-drafted lease agreement reduces the likelihood of landlord-tenant litigation, it does not guarantee that disputes will not arise. Among other things, commercial leases tend to run for a number of years and the parties cannot foresee such factors as the growth of the tenant’s business, the closing of other commercial operations in the area, or changes to municipal zoning regulations.

When a landlord has not fulfilled its obligations under a commercial lease, it can negatively impact the tenant’s business operations and profitability. While the possible remedies for landlord breaches are sometimes dependant on the terms of the lease agreement, the following landlord actions are common issues seen in landlord-tenant disputes:

• The premature termination of the lease in violation of its terms;
• Failure to make repairs as required under the terms of the lease;
• Unilaterally changing the lease terms;
• Collecting fees not outlined in the lease;
• Limits placed on the tenant’s use of the leased space not described in the lease agreement;
• Failure to make modifications to the property, as agreed upon in the lease; and
• Failure to provide services such as security, landscaping, or snow removal as required by the lease.

For many commercial landlords, the leasing of property is their primary business. Failure of a tenant to comply with the terms of a lease can result in reduced rental income for the landlord and a reduction in the property’s value for rental and resale purposes. It may also lower the value of any neighboring commercial properties owned by the landlord. Issues that are commonly raised by landlords in landlord-tenant disputes include:

• Failure to make the agreed-upon rental payments;
• Early termination of the lease without compensation;
• Property damage as the result of negligence or misuse;
• Modifications to the property that were not agreed upon in the lease;
• Improper use of the leased premises for which the landlord may be found liable; and
• Tenant actions that reduce the value of adjacent spaces or properties owned by the landlord.

When landlords and tenants are unable to resolve a dispute between themselves, they will often turn to litigation for a solution. In most cases the party initiating the lawsuit will do so as an action for breach of contract that may ask the court to enforce or modify the terms of the lease and monetary damages. It is also common for the party being sued to assert counterclaims alleging that the plaintiff’s actions also resulted in a breach of the lease. As a result, commercial landlord-tenant litigation is often complex and sometimes involves court injunctions that may disrupt the business operations of the parties.

The attorneys at Thomas H. Curran Associates have decades of experience representing clients in commercial real estate and have represented several large real estate investment trusts. Our attorneys understand that landlord-tenant litigation can be extremely disruptive to clients’ business operations and may have a dramatic impact on their profitability. The firm’s lawyers will seek favorable resolutions to disputes that will have the minimum impact on the client’s bottom line. Additionally, our attorneys can represent clients negotiating commercial leases to minimize the probability of future litigation regarding their terms.