Mar
16
Do I have to honor a commercial lease after going out of business?
By
My lease on this retail space is 5 years, after 2 years I have gone out of business.The lease is for 6500.00 a month to what xtent do I have to honor the lease?The bad economy is the culprit and the landlord is no being nice, infact he is being greedy saying that it is not his fault but I am sincerely out of business and I would not to see my personal property affected.What can I do?
Rent Back
As a new business, can I get a retail / commercial lease in my LLC name, rather than my personal name? I have no experience with this whatsoever. Is it possible? plausible? Do you have any tips or tricks to recommend in negotiation of my lease? It’s my understanding that many landlords will give “free” rent and build-out reimbursement …. my end goal is to NOT lock myself in PERSONALLy...
Basic Commercial Lease Agreement Guidelines A commercial lease agreement is a contract that legally binds the property owner and the tenant. The lease agreement gives the tenant the right to use the property for commercial purposes for a certain period in exchange for money paid to the property owner.The lease agreement also provides an...
Commercial lease, can I get out of it? I have a commercial lease on a retail premises it is a 10 year lease with about 8 and a half years to run, break clause at 5 years. When the new owner takes over I will HAVE to sign an “authorised guarentee agreement” covering the landlord should the...
criteria to lease a retail space to establish a business ? I am thinking of leasing a retail space (approx 1000 square feet) to open a retail business. I heard that i need to have a good credit. Is this “good credit score” in credit report that the landlord will look at? or is it more than good credit score?...
What is the most cost efficient way to run a retail food business without leasing a space? A retail food business owner can not produce products in their personal kitchen. I can not afford to lease a retail space. Do you have any advice on how to make this work?Passive Income ...
Leave a Comment
You must be logged in to post a comment.
4 Comments
March 18th, 2010 at 7:08 pm
It isn’t his fault. How do you expect them to stay in business without rent? It’s business, not personal. You signed the lease for 5 years, you agreed to pay for 5 years.
Now, as far as how to get out of it… see if you can find someone to assign the lease or business to. If you find someone else to take over the lease, the Landlord may let you out of it.
March 21st, 2010 at 10:44 am
Yes, you have to honor the lease and if you don’t, he can take you to court and have your wages garnished, etc. Just because the business failed does not mean that you get out of your responsibility to pay.
March 22nd, 2010 at 5:45 pm
If you personally guaranteed the lease, then you’re liable. If your business was a limited liability corporation, then you may not be liable.
March 23rd, 2010 at 9:28 pm
Was your business a LLC or S-Corp, a partnership or were the sole proprietor? Did you personally guarantee the lease? Did your business or yourself declare bankruptcy or do you plan to? Those questions need to be answered first.
If you were the personal guarantor and neither you nor the business have declared bankruptcy he can file suit against you for actual damages but not for the duration of the lease unless it is vacant for the full 5 years. After he does so you need to take a look at all your options. Your failed business has probably caused other unpaid debts as well. Then you have to decide to pay up as the loser of this and any other suits or declare bankruptcy.
That is the short version. Good luck.