How Can Landlords and Tenants Resolve Commercial Lease Disputes?

 Posted on December 20, 2023 in Real Estate

In the bustling business environment of Fort Lauderdale, Broward County, and the surrounding areas, commercial lease disputes between landlords and tenants are not uncommon. These disagreements can arise due to various issues, such as rent increases, property maintenance, or lease termination. There are a variety of ways these issues can be addressed, and landlords and tenants may work together to reach agreements or take legal action to address their concerns. By working with an attorney who has experience in commercial real estate issues and litigation, landlords and tenants can protect their rights and take steps to resolve disputes effectively.

Understanding Commercial Lease Disputes

A commercial lease dispute occurs when there is a disagreement between a landlord and tenant regarding the terms or execution of their commercial lease agreement. While some disputes may consist of minor disagreements, others may be more serious, and they could potentially involve eviction proceedings.

The first step towards resolving any dispute is understanding its root cause. Some common causes include:

• Rent arrears: If a tenant fails to pay rent on time, a landlord may take action to collect the amount owed, or they may choose to pursue an eviction so that the space can be leased to a new tenant.

• Breach of contract: When either party does not fulfill their obligations under the lease agreement, this can result in financial losses or other problems. A landlord or tenant may seek to enforce the terms of their agreement and address any losses that occurred due to a breach.

• Property damage: Landlords and tenants may encounter disagreements over who should bear the cost of repairs or renovations. Disputes may also be related to who is responsible for performing maintenance or addressing safety issues that may affect tenants or their customers.

• Termination: Either party may seek to terminate the lease, but they may encounter disputes over what types of notice are required in these situations, whether any early termination penalties will apply, or other related concerns.

Negotiation as a Resolution Method

Negotiation is often the first method used to resolve commercial lease disputes. Landlords and tenants may discuss their concerns openly in an attempt to reach an agreement that satisfies everyone involved. It is crucial during this process to maintain open lines of communication and work towards finding middle ground where possible. An experienced attorney can provide representation during these negotiations, ensuring that their client’s rights will be protected and working to resolve issues in a way that is beneficial for both parties.

Mediation or Arbitration

If the parties cannot reach agreements through negotiation, they may consider other dispute resolution options. Mediation can often be a beneficial way to address commercial lease disputes. During the mediation process, a neutral third-party mediator can help facilitate discussions between the parties while guiding them toward reaching agreements. This can help landlords and tenants find solutions that will protect the rights of both parties while ensuring that they can continue to maintain a positive relationship.

Arbitration is another alternative dispute resolution method in which an arbitrator or panel will review the case. Arbitration may follow similar procedures as a trial held in court, but it is often less formal. An arbitrator who has an understanding of the issues being disputed can review arguments made by both parties and reach a decision on how disputes should be resolved.

Litigation

If all else fails, taking legal action may be necessary. Either party may file a lawsuit seeking to enforce the terms of a commercial lease agreement or require the other party to address the damages that have occurred because of a violation. Litigation may include eviction proceedings, breach of contract disputes, or the resolution of other types of disputes between landlords and tenants. During this process, representation from an experienced attorney is crucial.

Contact Our Broward County Commercial Lease Dispute Attorney

If you are involved in a commercial lease dispute as a landlord or tenant, The Elliot Legal Group, P.A. can help you protect your rights and interests. Our dedicated Surfside commercial lease lawyer has extensive experience handling these types of cases. With our understanding of real estate law, business law, and contract law, we can help ensure that disputes can be resolved successfully. Contact us at 754-332-2101 to set up a consultation and get legal help with issues related to your commercial lease.

Sources:

https://www.businessnewsdaily.com/15101-commercial-lease-guide.html