Commercial Lease Disputes: Key Issues and How to Handle Them

Commercial lease disputes are a common challenge for both landlords and tenants. These disputes can lead to financial strain, legal battles, and disruptions in business operations. Whether you are a commercial property owner or a tenant, understanding your rights and obligations under California law is crucial.

Borna, an experienced real estate lawyer based in California, specializes in resolving commercial lease disputes efficiently. If you need legal assistance, contact Borna at (888) 42-BORNA or visit the office at 2530 Wilshire Boulevard, 3rd Floor, Santa Monica, CA 90403.

Common Area Maintenance (CAM) Charges

One of the most contentious issues in commercial leases is Common Area Maintenance (CAM) charges. These charges are meant to cover shared property expenses such as landscaping, security, property taxes, and maintenance of parking lots and hallways. However, disputes often arise when tenants believe they are being overcharged or that certain costs are unfairly included in CAM fees.

Key Issues in CAM Disputes:

• Lack of Transparency: Some landlords fail to provide a detailed breakdown of CAM charges, making it difficult for tenants to verify costs.

• Improper Allocation: Disagreements may arise if the lease does not clearly specify how CAM charges are divided among tenants.

• Excessive Increases: Sudden or unexplained hikes in CAM fees can lead to financial strain for tenants and potential legal action.

How to Protect Yourself:

• Carefully review lease terms related to CAM charges before signing.

• Request annual CAM reconciliations and audit rights in your lease agreement.

• Consult a real estate attorney if you suspect unfair CAM charges.

Breach of Lease and Early Termination

A breach of lease occurs when either the landlord or tenant fails to meet the lease’s terms. Common breaches include non-payment of rent, unauthorized use of premises, and failure to maintain the property. Early termination disputes arise when a tenant wishes to leave before the lease term ends or when a landlord seeks to evict a tenant without valid cause.

Common Breach of Lease Issues:

• Non-Payment of Rent: If a tenant fails to pay rent on time, landlords may initiate eviction proceedings.

• Violation of Lease Terms: This can include subleasing without permission, using the property for unauthorized purposes, or failing to maintain the premises.

• Landlord’s Failure to Provide Services: If a landlord does not maintain the property or fails to provide agreed-upon services, tenants may have legal grounds to terminate the lease early.

How to Handle Early Termination Disputes:

• Review Lease Terms: Ensure you understand the conditions for early termination and any penalties involved.

• Negotiate with the Landlord or Tenant: A mutual agreement may be possible to avoid litigation.

• Seek Legal Counsel: A real estate lawyer can help negotiate a fair resolution or represent you in court if necessary.

Contact a California Real Estate Lawyer

If you are facing a commercial lease dispute, having an experienced attorney on your side can make all the difference. Borna specializes in handling commercial lease disputes, ensuring that clients receive fair treatment under California law.

For legal assistance, contact Borna at (888) 42-BORNA or visit the office at 2530 Wilshire Boulevard, 3rd Floor, Santa Monica, CA 90403. Protect your business by getting the right legal support today.