A commercial lease is a binding contract between the landlord and tenant that establishes each party’s rights and responsibilities. But what happens when a business tenant fails to follow the lease terms?
Potential remedies include terminating the tenancy, pursuing an eviction or seeking financial damages. However, a commercial landlord’s options depend heavily on the lease language and the nature of the tenant’s breach.
A carefully drafted agreement is essential
A breach of lease occurs when one party fails to perform an obligation required by the lease agreement. For a commercial tenant, that may include:
- Failing to pay the rent
- Using the property for unauthorized purposes
- Failing to maintain or repair the premises when required by the lease
- Making unauthorized alterations to the property
- Abandoning the premises before the lease expires
Not every violation necessarily justifies the same legal remedy. The landlord should look to the lease itself, including its default and remedy provisions, to determine what steps are available.
Commercial leases are often more detailed than residential leases. They typically address:
- Rent increases
- Maintenance and repairs
- Insurance requirements
- Property use
- Subleasing
- Default
- Termination
Clear language makes it easier to determine what each party must do and what remedies are available when a lease is breached.
Massachusetts law will look to the parties’ contractual agreements in leasing disputes. A landlord who feels their commercial tenant has breached the lease should take the following steps:
- Review the lease to identify the specific provision allegedly violated, along with remedies provisions
- Document the breach with invoices, photographs, correspondence and other evidence relating to the tenant’s conduct
- Follow the required notice procedures outlined in the lease agreement
- Evaluate the available options
- Determine whether litigation is necessary or if the dispute can be resolved through negotiation or mediation
Speaking with a legal professional can be especially important. They can help with potential remedies, whether that’s negotiation, eviction or a separate civil action.
