Many entrepreneurs share a common understanding that business involves taking a lot of risks. Startup owners may decide to enter into a lease for commercial property to create a specific image for their operation. Not long after, they may learn that they acted too soon.
Business owners may start to consider their options for pulling out of their commercial leases at that point. Know that you have a few different options that may be appropriate for asking for a release from your lease in your case.
Convincing your landlord to allow you to break your commercial lease
You’ll want to track down your commercial lease before reading any further and scan its terms and conditions. One or more of those statements should cover reasons why you might want to cancel your lease and the penalties for doing so. It may contain language that allows you to pull out of the lease potentially penalty-free if your landlord doesn’t uphold their obligations to you.
Commercial leases are highly negotiable. You may need to consult with an attorney if you don’t see any terms in the agreement for breaking it.
You may find that your landlord only requires you to provide 30-days notice of cancellation of your lease if you are a month-to-month tenant. Even if that doesn’t apply, you may find in conversing with your landlord that they’ll let you out of your lease because they have a waiting list to get tenants in to whom they can assess higher rent fees.
Another discovery you may make when reviewing your lease is that you can sublet your unit. You may want to ask your landlord about the possibility of doing a lease assignment allowing you to transfer your remaining interests to the new tenant. You may, alternatively, have your subletter pay a portion of the monthly rent to your landlord while you pay the balance.
What penalties might someone face for breaking a commercial lease?
Almost every contract includes penalties for breaching the agreement. You may be able to negotiate an alternative settlement in your situation, though. An attorney can review your contract and advise you of the rights it affords you when you want to break a lease.