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How to avoid commercial landlord and tenant disputes

On Behalf of | Apr 3, 2024 | Real Estate |

Renting out commercial space can become a lucrative business, but it also relies on maintaining a good relationship with your tenants. You cannot always predict how your tenants will behave or whether there will be future problems.

Fortunately, there are ways to avoid costly litigation or other disputes with commercial tenants.

Clear communication

Most landlords want to avoid litigation, particularly given the high risks involved with commercial real estate in today’s market. One way to avoid litigation is to have clear lines of communication with your tenants. Establish avenues in which you can speak clearly and openly with your tenant. Clear communication prevents misunderstandings. Be clear on your lease terms, expectations and the responsibilities you have to your tenant.

Detailed lease agreements

Well-drafted lease agreements should outline the terms and conditions of the tenancy, including rent, lease duration, maintenance responsibilities and any specific provisions or restrictions. Both parties should review the lease carefully and seek clarification on any ambiguous terms before signing.

Regular property inspections

Property inspections identify maintenance issues that you can promptly address. Inspections can also give you a chance to confirm that your tenants remain compliant with lease terms. Conduct inspections on agreed-upon intervals, so you can address violations early on and prevent minor issues from escalating.

As part of your agreements, make sure that you have clear policies regarding what to do in case of litigation. If your tenant files a claim or if your tenant violates the lease, you should have guidelines to follow for the next steps of the process.