Leasing commercial space is vital for business owners across California. They want to find the right space for the right price in the right neighborhood. Once they find such a location, holding on to it can be a top priority.
However, that might be easier said than done when a commercial tenant and landlord get into a dispute. In these situations, not only could landlords and tenants be facing financial losses, but customers could also suffer consequences.
A battle between landlord and tenant
For instance, recently a California landlord and a beer garden tenant clashed over the landlord’s decision to evict the beer garden once their lease ends next month.
The two parties have had a strained relationship, which was evidently caused by the beer garden owner’s decision to pay the rent late every month. The owner said he did so purposefully because their agreement stated no penalties for late payments.
While the beer garden owner says he would be willing to pay the landlords more money if they let him stay, the landlords maintain they have no plans to renew the lease.
Loyal customers caught in the middle
If the lease is not renewed, the space could sit vacant for at least two years, which is when the landlords hope a new project for retail and restaurant spaces will open. Or, the landlord might continue operating a beer garden in the space, considering the loyal customer base in the area.
Ultimately, though, the disputes between the landlord and the beer garden owner puts customers in an unfortunate position.
Lessons to learn
If you are leasing commercial space, either as a tenant or a landlord, know that you can prevent similar disputes from hurting your business or contractual agreements.
One option is to ensure your contract is comprehensive and specific. It should include details about financial expectations and penalties, grounds for terminating the agreement and terms for renewal.
It can also be important to work through a landlord-tenant dispute with the help of an attorney, rather than try to navigate a complicated situation alone. This can help people avoid making decisions based solely on emotion, which can work against them in a professional – and tenuous – relationship.