FAQ
What’s the best way to handle security deposit disputes in a commercial lease?
Start by clearly defining the deposit amount (often 1–3 months’ rent) and permitted deductions for damages beyond normal wear and tear. Include a walkthrough checklist with photos/videos to document pre-move-in conditions. Use a separate holdback account for repairs, and specify the timeframe (typically 14–30 days) for the tenant to address any claims before deductions are made.
Should we include an assignment clause in our lease for a multi-tenant building?
Yes, if the tenant might sell or relocate their business. An assignment clause allows the tenant to transfer the lease to a new party with landlord approval, which protects your property from vacancies. Specify conditions like the new tenant’s financial qualifications, business type, and whether the original tenant remains liable for the lease terms. Consult local laws—some states restrict assignment rights to prevent tenant turnover.
How do we address common area maintenance (CAM) fees in a lease for a mixed-use property?
CAM fees cover shared expenses like parking lot lighting, landscaping, or building security. Clearly define what’s included (e.g., snow removal, pest control) and how costs are calculated (square footage, per-unit, or total building). Set a cap on annual increases or tie them to a consumer price index (CPI) to avoid unexpected spikes. For tenants, negotiate a gross lease where CAMs are bundled into the base rent for simplicity.
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