Parties to a commercial lease often disagree on terms relating to the lease agreement. Tenants and landlords typically quarrel the most when it comes to negotiating payment of rent terms. Avoiding a lease dispute over rent negotiations starts with transparent negotiations between you and your landlord to ensure your lease agreement is unambiguous. However, despite your best efforts, a lease dispute can often arise during the rent negotiation process. This article will discuss common leasing disputes that concern rent negotiations over a commercial property. <\/p>\n\n\n\n
As a tenant, you may try to negotiate a rent-free period before agreeing to a commercial lease agreement. Although, a landlord may offer this at the outset to encourage the tenant to sign the lease agreement. You and your landlord may subsequently have a dispute over the rent free period as the lease progresses. This may occur when each party has misunderstood the agreement for the rent-free period. For example, they could disagree on the following:<\/p>\n\n\n\n
It is, therefore, crucial that you document the details of any rent-free period.<\/p>\n\n\n\n
Commercial lease agreements can contain a rent review<\/a> clause. This details that a landlord can review the level of rent their tenant pays periodically throughout the lease. <\/p>\n\n\n\n Rent reviews will usually increase the rent. Your landlord will assess the increase based on the type of rent review the parties agree on. For example, your landlord could base the rent review on:<\/p>\n\n\n\n As a tenant, you are likely aware that your commercial lease agreement contains a rent review clause. This clause allows your landlord to raise the rent. However, you may disagree with the new rental payment amount. Consequently, you and your landlord will likely be embroiled in a dispute in terms of negotiating rent. Should such a dispute arise, you should first consult your lease agreement. Your lease agreement will likely detail the dispute resolution process you and your landlord must follow. This may be to appoint an independent expert or carry out arbitration.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n