Here's how you can resolve common conflicts in Commercial Leasing.

1 Rent Review

Rent reviews are a standard feature in commercial leases, and they can often be a source of contention. To resolve disputes over rent increases, first, review the lease agreement to understand the terms and methodology for calculating rent adjustments. If the lease specifies a market review, obtain an independent valuation to ensure fairness. For fixed or indexed reviews, ensure the calculations are accurate and in line with the agreed terms. Always communicate openly with the other party and consider negotiation or mediation if there is a disagreement on the new rent.

3 Property Upkeep

Maintaining the leased property in good condition is crucial for both tenants and landlords. Conflicts often arise regarding who is responsible for repairs and maintenance. To resolve such issues, consult the lease agreement to determine the responsibilities outlined for each party. Regular communication and documentation of any maintenance issues or repairs are vital. If there's a disagreement, consider hiring a neutral third-party inspector to assess the situation and provide an unbiased opinion on the required action.

4 Operational Changes

Business needs evolve, and sometimes tenants need to make operational changes to their leased space that weren't anticipated in the original lease. When such conflicts arise, discuss the proposed changes with the landlord. Provide clear reasons for the changes and how they will affect the property. The landlord may require alterations to be reversible or may request additional terms to accommodate the changes. Mutual flexibility and a willingness to adapt can lead to an amicable solution.

5 Security Deposits

Security deposit disputes are common when tenants vacate the property. To avoid conflicts, both parties should document the property's condition at move-in and move-out with photos and detailed descriptions. If there's a disagreement over deductions from the deposit for damages or cleaning, provide evidence and negotiate based on the lease terms. If necessary, use a small claims court or a third-party mediator to resolve the issue fairly.

6 Legal Disputes

When all else fails, legal disputes may arise in commercial leasing. It's crucial to seek legal counsel to understand your rights and obligations under the lease agreement and applicable laws. Alternative dispute resolution methods like arbitration or mediation can be less adversarial and more cost-effective than litigation. Remember, preserving a positive relationship should be a priority, so consider legal action as a last resort after exhausting all other avenues of conflict resolution.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?