Small Business Litigation and Commercial Leases By Robert L. Froerer on October 18, 2019

Business contractWhen a small business owner sets up a company, location is a crucial aspect to consider. Choosing a commercial space that will work well for the business is vital to its long-term success. Unfortunately, many small business owners are unprepared for the legal details of a commercial lease.

The small business attorneys at Froerer & Miles can help our Ogden, UT, clients with all aspects of small business litigation, including business set-up services, business documentation, commercial lease, and any lease or contract disputes. Small business litigation services regarding commercial leases can be vital in helping entrepreneurs find a commercial lease with terms that are favorable to their business.

Commercial vs. Residential Leases

Nearly everyone rents an apartment or home at some point in their life, so most people are somewhat familiar with residential leases. Across the board, residential leases generally follow the same standard form. They cover issues such as security deposit, rental cost, and the duration of the rental. Most importantly, residential leases must adhere to consumer protection laws, so renters can feel somewhat confident that a residential lease is fair.

Commercial leases are different than residential leases, and most small business owners have little to no experience with this type of contract. It is important for our clients to understand some of the aspects of commercial leases that set them apart from residential leases:

  • Most consumer protection laws do not pertain to commercial leases
  • Commercial leases are highly customized, and generally don’t follow a standard form
  • Commercial leases are flexible, so business owners should be prepared to negotiate
  • Commercial leases generally contain detailed terms that extend far beyond rental cost and rental duration

What to Look for in a Commercial Lease

The key aspects of a commercial lease are the monthly cost of rent and the length of the lease. However, it is important to look beyond these aspects of a commercial lease agreement. Commercial leases contain many terms that could help or harm a small business. Some details to consider when looking for a commercial lease include:

  • What costs are included in rent (insurance, property taxes, maintenance repairs, etc.)
  • Allowable rental increases
  • Security deposit conditions
  • Which areas are included in the rental (i.e. shared hallways, bathrooms, etc.)
  • Regulations regarding signs and other space modifications
  • Lease renewal and expansion options

The Importance of Working with an Attorney

A commercial lease is a legally binding agreement, so small business owners should feel confident that the lease will be favorable to their business before they sign anything. The best way to understand the terms of a lease, and whether they are favorable to the business, is to have it looked over by a small business attorney.

Our legal team is happy to help our clients understand the detailed legalese that often makes up commercial leases. The initial fee of hiring a small business attorney to review a commercial lease can save business owners a lot of stress and money in the long run.

Can I Dispute a Commercial Lease?

Because commercial leases are legally binding, they are difficult to dispute, unless the terms of the lease have been violated. Our attorneys can look over the terms of a commercial lease after a dispute arises and work with clients to determine which legal options (if any) may be available to them to get out from under the terms of the lease.

Learn More

At Froerer & Miles, our attorneys can help with all aspects of small business litigation. Whether you would like a knowledgeable attorney to review your commercial lease, or are looking for help with your small business set-up, we are happy to assist. Send us a message to learn more or call (801) 621-2690 at your earliest convenience.

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Froerer & Miles

The attorneys at Froerer & Miles have successfully represented clients in a wide range of practice areas since 1959. Our team of attorneys can protect your best interests in matters related to:

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We offer free consultations and provide honest feedback to potential clients regarding their cases. To request your free consultation, contact us online or call us at (801) 621-2690.

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