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Addressing Common Types of Commercial Lease Disputes

Posted on in Commercial Litigation

Milwaukee commercial litigation lawyerCommercial lease disputes can be costly and complex, due to long lease terms and the large amounts of rent payments involved. Often, once one side believes that there has been a breach of the lease, the most efficient way to resolve the problem is to bring in legal professionals who are experienced in commercial real estate and contract law.

A dispute between a commercial landlord and tenant is typically a contract issue at heart, with the lease being the controlling contract. There are numerous laws and cases that will determine what the various clauses of the lease mean in your case. Here are a few examples of common commercial lease disputes:

Vaguely Drafted Lease

If a lease is not properly drafted, commercial lease disputes are bound to occur. The key to properly drafting a lease is being clear as to what each party’s obligations and rights are. For example, the lease should state the proper person or entity who is leasing the property, what rights the tenant has to common areas, what renewal options are available, and what utilities are included in the lease. 

Drafting a lease should take a significant amount of time and effort to complete, as there are many details that should be negotiated and reduced to writing. Hiring an attorney to handle this project will make it less likely that a dispute will arise due to vagueness in the lease.

Landlord Rights

Some leases are drafted in such a way that gives the landlord a significant amount of control over the property and even the tenant’s business. If this is not adequately explained, or if the landlord becomes overbearing, a dispute can occur. For example, some leases set the rent at a percentage of the business’s profit. This can be problematic for a business, because a landlord may pressure the business to pursue short-term profits at the expense of a long-term business plan.

Tenant Rights

Likewise, some commercial tenants may overstep lease provisions. For example, they may wish to make renovations that exceed the scope of the lease or place signage in an inappropriate location. In addition, tenants may insist on having hazardous chemicals onsite that could drive up insurance premiums for the landlord. On the other hand, tenants may need to take steps to protect their rights, and one of the most common complaints against landlords is that they fail to make necessary repairs to the property.

Call a Milwaukee Landlord-Tenant Dispute Lawyer

At Gimbel, Reilly, Guerin & Brown, LLP, we represent landlords and tenants in commercial lease disputes. We will review the lease at issue and learn what led to the breakdown of the agreement. Our attorneys have the experience and knowledge in this area of law to take on the most complex cases. 

If you are involved in a lease dispute, you cannot afford to handle this situation yourself, especially if the other party has retained legal counsel. Lease disputes can result in high damage awards. To speak to one of our skilled Milwaukee, WI commercial lease dispute attorneys, call our firm at 414-271-1440.

Sources:

https://www.wisbar.org/NewsPublications/InsideTrack/Pages/Article.aspx?Volume=4&Issue=15&ArticleID=10420

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