Commercial Rent Abatement Lawsuits

One of the most expensive items on a businessperson’s list is commercial rent. A means of decreasing the rent is abatement.

What Is Abatement?

Abatement has several meanings under the law. In commercial rent leases, abatement is the reduction, rebate or increase in rent. Another term is free rent or early occupancy. Many commercial leases encourage abatement as a means to ensure property occupancy.

In several states, governments may encourage the use of this device. New York, for example, has a Commercial Rent Abatement Program. It grants property tax abatement to commercial landlords/ladies who are to pass it on to their tenants, sometimes in a form of rent abatement.

The Lease

• If an individual is leasing a commercial property, look to see if abatement is an incentive. If this is included examine the agreement for a detailed abatement clause. Also
• Make sure the landlord/lady states specifically the months of occupancy including the free rent
• Confirm the dates of free rent – specifically whether they refer to rental months or actual days of occupancy
• See if abatements are negotiable for slow months of business
• Note if there are clauses indicating any conditions/situations under which you must reimburse the landlord/lady
• If abatement is linked to such things as structural defects or repairs

You need to understand exactly what the abatement entails. You must know the obligations as they apply not only to yourself but also to your landlord/lady. This will save you from unexpected surprises including commercial rent abatement lawsuits.

Commercial Rent Abatement Lawsuits

Lawsuits may arise because of several things. They usually relate directly to the inability of either party to fulfill the formerly agreed upon obligations. This is why it is so important o know what your commercial rental agreement includes. A structural defect the landlord/lady fails to take care of can harm business. The tenant may demand abatement and cease paying rent, but the landlord/lady may evict. The result may well be a lawsuit.

If repairs are inclusive in the rent, the tenant may deduct the amount it costs to repair the damage. This is a form of abatement. If the landlord/lady disagrees or does not see it as part of the agreement, a lawsuit may ensue.

Will A Lawyer Help?

A lawyer is the best help for anyone entering into a commercial lease. He or she can read the documents and arrange for better terms for the business. He or she can help prevent a commercial rent abatement lawsuit or help the tenant fight it successfully.