Late on Rent (Commercial/Retail Space)

[Tenantblues]

What is the name of your state? Georgia

We have a retail business that is incorporated. We have been in the same shopping center/location for over 18 years. The current lease was 10 yrs. w/ a ballon rate. We are in our last year (lease expires in 10/04.) Our business has suffered over the last 3 years due to economy etc.. We have barely managed to keep up our lease (rental obligation) until this month. We have not yet paid 04/04 rent and have tried to work w/ the landlord to no avail. He demands full payment in 3 days or he will proceed to the next step. Having never been in this position we are not sure what to do, it is not likely that we will have the full amount available in 3 days. We would like to move to a smaller space w/ a lower rent without having to bankrupt. We seem to be fighting a losing battle maintaing the current space and rent!! I should also mention that we inherited this business and this 10 yr. escalating rental agreement (it was left to us 8 years ago.) We did change all corporation papers and business licensing to refelct new ownership, however, a new lease agreement was never met. We never renegotiated a new lease nor signed one...Are we obliged to honor the original lease?? Where do we go from here???

 

[JETX]

"Are we obliged to honor the original lease??"
*** Based solely on your post, yes.

"Where do we go from here???"
*** Probably to a new address..... with a likely side trip to court.

I predict that VERY soon, you will go in one morning and find that the locks have been changed and suggest that you make plans accordingly.

 

[Tenantblues]

Our landlord does not have access to our lock, keys or alarm system

We are located in a strip mall and are responsible for our own locks, security system, utilites, insurance etc. etc.. I would assume that the landlord would be obligated to follow a legal protocal prior to eviction. I originally failed to mention that our landlord is in the process of a "facelift" for our strip mall that has been a disaster and has made it near impossible to maintain a retail oriented business like ours. The construction has left our storefront very difficult to even enter. The storefront is dirty, dangerous, and for the few that call to be sure we are open for business, subjected to the cat-calls and leers from the less than respectable construction workers!! I find it hard to believe we have no options....

 

[JETX]

"I would assume that the landlord would be obligated to follow a legal protocal prior to eviction."
*** Not really. Since this is a commercial lease, you are not given the same privileges of a residential lease. In your case, this is a simple matter of contract law. Read your lease/contract. It will be a real 'eye-opener' for you.

"I originally failed to mention that our landlord is in the process of a "facelift" for our strip mall that has been a disaster and has made it near impossible to maintain a retail oriented business like ours. The construction has left our storefront very difficult to even enter. The storefront is dirty, dangerous, and for the few that call to be sure we are open for business, subjected to the cat-calls and leers from the less than respectable construction workers!!"
*** Fascinating... but, unless you have some provision for 'adjustment or allowance' in case of 'facelift', not relevant.

"I find it hard to believe we have no options...."
*** Oh, you do. Pay your rent, remain. Don't pay your rent, lock out. Pretty simple.

 

[Tenantblues]

Look at the Lease?? We have never seen it!!

We have never seen a copy of the original lease. We inherited this business and this lease. We have not been able to locate a copy of the original lease. We have worked under the premise of "good faith" with our landlord for the last 8 years. I do have copies of misc. correspondence from the original lease negotiation regarding rates etc..., but not the details of terms. Looks like we will be making an appt. w/ an attorney. Thanks for the info.

 

[HomeGuru]

Re: Look at the Lease?? We have never seen it!!

We have never seen a copy of the original lease. We inherited this business and this lease. We have not been able to locate a copy of the original lease. We have worked under the premise of "good faith" with our landlord for the last 8 years. I do have copies of misc. correspondence from the original lease negotiation regarding rates etc..., but not the details of terms. Looks like we will be making an appt. w/ an attorney. Thanks for the info.

**A: wow, you buy a business and assumed the lease but never looked at the lease? Very risky and dangerous.

 

[Tenantblues]

Forgive me...I did not realize inheritance was a purchase...

Clarification is the word of the evening. This business was left to us in an inheritance, not a purchase. If I was a sensitive person, I would feel certain that someone on this forum gets satisfaction from sparing rather that giving constructive advise. Alas, I gave up sensitivity about the same time I gave up childish insecurity and lack of self-knowledge. For the record of future reading...we have requested a copy of the lease for years from the landlord....to no avail I might add. Thanks again for all the "positive" insight.

 

[HomeGuru]

Re: Re: Look at the Lease?? We have never seen it!!

Wow, you inherit a business and assumed the lease but never looked at the lease? Very risky and dangerous.