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Tenant Rights in Commercial Lease

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M

mji

Guest
Since relocating a retail business to a location wherein the previous property owners of the plaza occupied the leased premises, we have experienced ongoing conflicts concerning utilities for the common ground areas which are attached to our premises, billed to our meters and consequently paid by us without reimbursement by the new property owners/landlord. This week, the landlord entered the premises without notification for repair purposes, but simultaneously placed locks upon our electric boxes forcing us to continue to pay common area charges, and preventing us from turning on electricity to certain areas of the leased premises. In so doing, we believe that keys to the locks which we had utilized to secure the boxes were removed and returned to our cash register (containing cash funds) but as no one other than the air conditioning technician who did not see the landlord enter the register was present on premises, we cannot prove our suspicions and our requests for the landlord to return our locks have been denied as they claim destruction. Without seeing if the locks had been key accessed rather than cut, we cannot prove our suspicions, but the register showed internal signs of rummaging.


Although the landlord made us aware that the water servicing the common area was derived from our meter and agreed to reimburse in cash for usage, no mention of the fact that the pylon signage and security lighting for both sides of the plaza were attached to our electrical meters. This fact was not discovered until the lease was in effect and we had relocated the majority of a substantive inventory to the premises, invested money into signage and occupational licensing. According to lease terms, any utilities (water, garbage, and electric) servicing these areas were to be prorated based upon square footage to each tenant.

The first indication of a problem was when I was contacted by phone at my previous retail location and told that the landlord had entered the premises (which contains an apartment like area with kitchen, livingroom, bedroom, etc.) and I believe to still be zoned residential due to prior usage, and turned on a light switch which controls security lighting to the parking lot. I was told that I MUST, WITHOUT EXCEPTION AND NON-OPTIONAL, keep this switch on at all times. At this point, I began to question what all related to my electrical boxes which were objectionally located unsecured on the exterior of my building. As the circuits were not marked, we began a process to determine what each circuit affected within the premises and indexed each box. Any circuits not relating to the interior premises were placed in the off position - there were many unknowns. The landlord immediately returned the pylon signage and security lighting to its on position and again stated that it MUST ABSOLUTELY be left on.

Upon receipt of electric bills it was also discovered that a utility pole rental and associated charges were being billed to our location. I contacted the utility and requested removal from our bill as we had never agreed to such and the utility reinterated that we certain cannot be held responsible for such charges if it is not our desire. The charges were removed, yet appeared on our next bill. I was told that the landlord called in and the unknowing of the situation, a representative had accepted their authorization to attach to our bill. I again cancelled the pole rental and requested notes prohibiting repeated action be added into the account. Additionally, we were being billed at a demand rate which, without the pylon signage, security lighting, and pole rental were not even remotely necessary for our business. Unfortunately the utility would effect no rate changes without a six month consumption record. I first sought an energy audit to determine the effect of the signage/lighting upon our bill, and upon completion of the five-six month period again solicited the utility for an analysis and rate change. The determinations were that the effect due to the demand rate was an increased demand of one value equivalent to 26.00 plus applicable taxes but in addition that each kilowatt of consumption for our business was being paid at a higher multiplier due to this increased demand.

From the onset of the eletrical billing we sought reimbursement or removal from the landlord - instead we were promised that if we allowed it we would be given cash reimbursements. Needless to say that never happened. Additionally, if the security lighting controlled from the kitchen area was not active, the landlord would enter the premises (containing a 40,000+ inventory and cash funds) and effect the lighting. No notice of entering the premises or allowance of tenant to be present was ever given. Entrance was after hours when the retail had been secured and assumed to not be vulrenable.

Tenant placed locks on the electric boxes as any and all efforts to resolve matters with the landlord were fruitless. Landlord maintains to present date that a vauge two sentence clause in the lease entitling them to "inspect the premises at any reasonable time during the lease term for any repairs or alterations deemed necessary." We as tenants however perceive this clause to mean "normal business hours or with prior notification" to the tenant - even though not particularly stated as such. I feel the safety of my inventory and assets is breached at anytime anyone enters the premises without my knowledge. The landlord howevers insists that as the property owners they are entitled to enter the premises at any time they choose and that notification of their presence after the fact should be sufficient.

1. As a commercial tennant do I possess rights that prevent landlord from entering premises? If so, specifically where do I find these rights as the Landlord Tenant Act seems only to apply to residential?

2. As present day, I remain forced to absorb electrical and water consumption charges stated in the lease to be prorated among tenants based on square footage. The landlords current claim is that they will not relocate facilities nor will they reimburse any expenses because due to the fact that we turned off at times they could never compute an accurate proration. Yet, all parties are aware that the electricity was always forceably returned to active status. Although the utility company assures us that this process is illegal, we seem helpless to rectify our current dilemna. What are our rights, how do we enforce them, and where specifically do I find the supporting documentaion?

3. In response to a letter we furnished to the landlord holding them in default of the utility clause and giving them seven days to either relocate facilities and reimburse tenant for previous consumption, and not enter the premises without notification/presence of tenant or to terminate the lease, they have agreed to terminate the lease effective August 31, but yet claim to be entitled to show the premises to prosepects at any time or day without notification to tenant. Due to the security breach this presents to our inventory and cash assets, we prefer to exit the premises on a more immediate basis. The original lease term was through 2/1/01. As there is a mutual agreement of termination, but the circumstances forcing to vacate the premises are a direct result of what we feel to be the landlord's default of lease, are we obligated to pay through August 31? If so, please explain why?

4. Since our submitting our letter to the landlord, we have been served with papers containing many false statements searching for other areas of the lease to attempt to hold us in default of. Some are so outlandish - complaints of tenant working late hours (no operating hours contolled by landlord) and other ridiculous statements, but they are trying to enforce a $1,000 security deposit(no deposit was in place) due to a clause which permitted a security deposit to be requested at any time "for restoration of all alterations made to the property." Tenant has made no alterations to the property other than nail h
 


T

Tracey

Guest
Call the utility companies & demand they separate the meters for your store & the common areas. Then terminate the service to the common areas & inform them that service is not to be restored in your name under any circumstances without your prior written authorization. (If you have such an instruction on file, the company can't bill you if it turns the lights back on without your approval.) Then sue L for reimbursement for all utility charges & for the costs of adding meters. Once you've put the common area utilities on separate meters, you'll be able to prove how much of your bills were from the common areas. In the mean time, get a pair of bolt cutters & cut the locks & turn the power off whenever you aren't using it.

Also sue L for abuse of access & file criminal complaints against L for trespass.

Find some non-key way to lock the doors when the resident is there -- chain the doors, install floor-ceiling deadbolts on the doors, etc.

Ignore the security deposit demand. The most L can do is give you 15 days to cure a material breach (refusing to pay the deposit) or vacate the premises. [83.20(3)] If L does that, the lease is terminated & L can't demand a deposit anymore. Your letter to L should state that you refuse to pay the deposit because L is in breach of the lease & a breachor cannot enforce a contract. (This is legalese for 'you started it!')

Keep your stuff outside. You can't conduct business without the displays anyway! If L takes it, charge L with theft/shoplifting. What damages can L claim from your displays? Take lots of pictures of how the place looks so you can show that the corner is not obstructed. Again, L has to give you 15 days to cure the breach or leave. (Assuming that having sidewalk displays constitutes a meterial breach, which I doubt.)

Same analysis with the residential use -- L has no damages & it may not be a material breach if L has known about the residential use but continued to accept rent. Heck, if I were you, I'd get a nasty scary dog & let it roam loose to protect the electrical boxes after cutting them off. Inform L that the dog is a "security device" & post Beware of Dog signs on all doors after hours. (You can do this even if you only have the collie.)

If L locks you out, you get to sue L for ALL KINDS of damages. You get free rent, attorney fees, costs, lost revenue, replacement of any lost or damaged property/inventory, etc. (Analogise to the residential L/T act remedies & hope the court is so pissed at L it really sticks it to him.) This would be the best thing in the world for you -- you get full profits without having to sell anything.

The FL commercial lease statutes are in Title VI, sections 83.001-83.251. They aren't very helpful though.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
 

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