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| NABBW Columnist - Women's Law Issues
Commercial
Leasing From the Landlord’s Perspective The terms of the lease will bind the parties for a considerable period of time and it is important, therefore, to carefully draft the lease up front. Also, often times, when the lease term is coming to an end and the parties want to negotiate an extension of the lease term, landlords are tempted to just amend the lease time and time again to extend the term. Certainly that is the quickest method to keep the lease going, but after a series of amendments, the underlying (original lease) may be 10 years or older. It may well be time to engage counsel, reevaluate the lease, and be sure it meets current-day standards and addresses issues that simply were not thought of those 10 years ago. Rent Stream. Naturally, an uninterrupted rent stream is the most important item for a landlord to preserve in its lease, for its own well-being and also to keep its lender happy. Landlords will want to be sure that the tenant does not have offset or deduction rights. Also, rent abatement provisions must be carefully and narrowly drawn. For example, if there is a service interruption, the tenant should not be entitled to an abatement of rent (suspension of rent payments) unless the interruption actually serves to deny the tenant use of the premises and continues for some period of time before the abatement is applicable. Also, if the lease allows the tenant to renew the lease, the rent terms for the renewal term should be clearly spelled out. Security Deposit. Landlords should ask for two months worth of rent as a security deposit. In rent structures which increase over the term of the lease, the landlord should ask for the two months at the highest rate under the lease. The lease should also provide that in the event landlord has to use all or a portion of the security deposit to cure a tenant default, that the tenant must immediately restore the security deposit. Additionally, the lease should provide that at the end of the lease term, the security deposit will be returned to the tenant after the landlord has had a chance to inspect the premises to be sure they are in order and to confirm that all monies due have, in fact, been paid. Insurance Obligations. Landlords want to be sure that the tenant is obligated to carry adequate levels of liability insurance. Otherwise, the tenant’s obligation to protect the landlord against certain claims becomes meaningless. It is not uncommon to require tenants to carry $2 or $3 million dollars in bodily injury insurance and $1 or $2 million dollars in property damage. These levels certainly were not typical years ago and landlords need to be certain that the insurance levels are meaningful. Assignment and Subletting. This is always a hot topic between the landlord and tenant. The landlord will want to keep the tenant it bargained for and the tenant will want the flexibility to assign (transfer) the lease or sublet (allow a third party to use) the premises. Landlords that agree to allow tenant the right of assignment or subletting should not be tempted to merely say, as is the case in many older leases, that consent to an assignment will not be “unreasonably withheld.” Rather, the lease should provide standards by which clearly the landlord is not being unreasonable. For example, it shall not be considered unreasonable for the landlord to deny an assignment request if the new tenant is not credit worthy or does not have experience in the business operated from the premises. Waiver of Jury Trial. Many older leases do not contain a waiver of jury trial. If things “go wrong” and the landlord finds the need to take the tenant to court, the landlord wants a quick determination of the issues. Jury trials will delay proceedings and, most often, make the proceeding more costly to the landlord. Visit Pat at http://www.hupk.com/attorney.asp?id=21 October
2005: From Sandra Dee to Sandra Day: Justice O'Connor and Women
Attorneys |
Ms.
Lambert rose to national prominence as a litigator with a
focus on insurance law in an age when there were few women
litigators, particularly in the area of insurance law. Ms.
Lambert has spent the last twenty years developing what is
now recognized as one of the largest insurance practices in
the state of Maryland. She lectures nationally, has received
a gubernatorial appointment in the field of insurance, and
is sought for her advice by Fortune 500 companies. Ms. Lambert
was the first female partner at Hodes, Ulman, Pessin &
Katz, P.A., Maryland’s 7th largest law firm, and is
now the firm’s Marketing Partner and an influential
member of its Policy Committee. Named one of “Maryland’s
Top 100 Women” (2004, The Daily Record), one
of “Maryland’s Legal Elite” (2005, Smart
CEO Magazine), a “Leading Lady” (2005, Smart
Women Magazine), and most recently named to The Best
Lawyers in America (2006). Ms. Lambert has become
a recognized leader in the area of women’s law issues.
Throughout Ms. Lambert's extensive career, she has devoted
great efforts to helping women achieve their goals, both personal
and business oriented.National
Association of Baby Boomer Women Copyright
2005, National Association of Baby Boomer Women |