Description
There are inherent risks involved in any commercial leasing arrangement between a landlord and tenant. Some are obvious and routinely accounted for in the protective provisions that landlords rely on offset exposure to financial loss, especially in the case of a risky tenant. But there are other risks that are less obvious, but equally as treacherous and potentially costly, that need to be addressed during the negotiation and drafting of the protective provisions. Failure to fully consider these common and lesser-known risks can result in the interruption or discontinuation of rental payment from a tenant.
Get the key strategies you need to protect a landlord’s interests, even when a risky tenant is involved. This 60-minute program provides options to protect against financial loss when drafting and negotiating commercial and industrial leases, with an emphasis on offsetting risk and compensation for potential loss of rent. Our expert panel will provide practical advice on the “hot button” issues, as well as the often-overlooked items, that arise in landlord-tenant contexts, including:
Non-obvious types of risk:
- Noise, odors, clientele
- Security
- Going dark
- Special case of restaurants
Why lease to a risky tenant?
Drafting protections for landlords when tenants pose legal or operational risks
Termination provisions – when can the landlord pull the plug?
Ways protect against risk
- Security deposits, dropping balance over time
- Letters of credit
- Monthly payments for CAM and taxes
- Escrows
- Link to licenses/permits
- Operating covenants
- Eviction issues