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Four dangerous terms and clauses in real estate rental agreements

4. Permitted use clause

If use is restricted, then that can have an impact on the future expansion and development of your business.

3. Relocation clause

A relocation clause allows your landlord to relocate your business to a different area within the rental complex. This puts you at a disadvantage because your customers might have become accustomed to meeting you at a specific address, not to mention the cost and time it will take to update all your marketing and sales materials to reflect the new address.

2. Renewal clause

An option to renew at the end of the lease term can be of great value, but a clause that merely says that the parties “agree to agree” on renewal terms at a later stage could be dangerous.

1. Compliance clause

The Americans With Disability Act requires all businesses that are open to the public or that employ more than 15 people must provide access to disabled people. If you signed the compliance clause, you will be responsible to make the premises compliant with the Act, and pay for any modifications such as ramps or wider doorways, if it didn’t comply before.

#leasing #negotiation #contract #tenant

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