Tenant reps play a vital role in helping businesses get the right commercial lease at the right rate and under the best possible leasing conditions. The role of the tenant rep does not stop after the paperwork is signed and a company moves into their leased space. An experienced office tenant rep company continues to act as a liaison between landlord and tenant after the lease agreement has been made. This is especially important concerning landlord notices delivered during the lease term.
When the Landlord Delivers A Notice
Landlord notices, no matter what they are about, must be carefully considered and appropriately handled. These notices may be minor and benign; however, more frequently they could involve concerns that could alter the agreements previously made on the lease. Companies must understand the legal impact of various official landlord notices before they act on them in order to protect themselves. The best way for companies to do that is to refer any landlord notices to their office tenant rep company for further scrutiny so their tenant rep can discuss the issue with the landlord.
Common Landlord Notices
There are quite a number of landlord notices that tenants could receive that could actually alter the terms of their commercial lease if not properly addressed. These can include payment default notices, notices directly indicating changes to lease options, and many others. Some of the more serious notices that need to be carefully considered with the help of an experienced tenant representative include:
- Building Rules Notices - Landlords may send notices of a change in building rules that could affect leasing tenants. As the building owner, a landlord can change building rules as desired. That said, there are times when these rule changes could contradict agreements already written into a company’s commercial lease. By accepting the notice without the necessary discussion, this assumes the company is in agreement with such changes and gives up any previously agreed rights.
- Lease Subordination - When a lender requires a tenant to acknowledge that the lease is subordinate to the lender, this puts the tenant at risk should the landlord default. Many times this could result in a tenant being evicted from their leased space even while having been a good tenant. In these circumstances, it is advisable to have an office tenant rep company negotiate against this type of subordination should the landlord default. By signing such notice without negotiation, a tenant can be left at a definite disadvantage.
- Tenant Estoppel - A tenant estoppel is a certified statement provided by the tenant to the lender regarding the tenant’s financial condition and likelihood of default. It is common for landlords looking to buy or sell a building to ask tenants to sign an estoppel certificate; however, these documents should be signed with caution as they are binding. They prevent a tenant from stating anything other than what is on the estoppel certificate. It is essential that the letter be inspected to ensure that it corresponds with the lease agreement or tenants could end up inadvertently affecting their lease agreement when a building is sold or financed.
Although most of these notices and letters are landlord concerns, they can have a negative affect on a tenant’s commercial lease. To alleviate such concerns, businesses should always work with a reputable office tenant rep company that can assist them through the leasing process, including afterwards. Tenant reps understand the different landlord notices that tenants could receive throughout a lease term. They know how to protect the tenant’s interest when the landlord starts making changes or putting the current lease terms at risk!