Five Important Duties of a Commercial Landlord

leasing, Wheaton commercial real estate attorneysWhen you own and lease out commercial property, such a venture could be extremely profitable. However, you could also face serious risks, especially if you are not properly prepared to handle the responsibilities associated with being a commercial landlord. Some of these risks include the possibility of financial loss or being sued for failing to meet your obligations as the property owner. It is important to understand what these responsibilities are and how to fulfill them. A qualified commercial leasing attorney can help.

Duty #1: Comply With All Applicable Laws

There many different federal, state, and local laws that apply to all property owners who rent out their properties, including commercial landlords. For example, as a commercial landlord, you are not permitted to discriminate against would-be tenants on the basis of certain criteria, including religion, race, and national origin. You must also follow all zoning laws and building codes. If you fail to comply with any applicable law, you could face serious consequences, including legal action.

Duty #2: Use Clear Language in Your Contracts

If your lease agreements are not clear and concise, your tenants might not understand what is expected of them. Your contracts could also be more difficult to enforce if there is confusion about what they contain. Commercial leasing contracts should clearly address all of the relevant concerns, including matters of rent, repairs, alterations to the property, and communication expectations.

Duty #3: Keep Your End of the Agreement

In addition to using clear language, your leasing contracts should only include provisions that you are willing and able to meet. You should also familiarize yourself with your responsibilities for making certain types of repairs, such as those involving heating and cooling systems, electrical work, and plumbing. This can help ensure that the property is maintained properly and in accordance with applicable laws.

Duty #4: Mitigate Risks and Limit Liability

Proper maintenance will go a long way toward protecting yourself and your property. However, limiting risk means more than fixing a broken water heater. You might also consider installing a security system, additional lighting, or doors and windows that can be locked securely. It is also a good idea to identify and address potential environmental hazards, such as uneven walkways where water could pool or roof overhangs from which snow or ice could fall.

Duty #5: Be Fully Insured

Despite taking all the precautions in the world, you could still suffer losses due to fires, floods, falling trees, or other “acts of God.” Comprehensive insurance coverage is a good way to protect yourself and your property. Similarly, you should also carry insurance policies on any vehicles or equipment that you may own and use in connection with leasing the property.

Call a DuPage County Commercial Real Estate Attorney

At Stock, Carlson, Oldfield & McGrath LLC, our team is dedicated to helping commercial landlords maximize the return on their real estate investments. Our experienced Wheaton commercial leasing lawyers can guide you through the entire leasing process and will assist you in managing any issues that may arise. Call 630-665-2500 to schedule a confidential consultation today.

 

Sources:

https://smallbusiness.chron.com/business-tenants-rights-67257.html

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