
Jesse M. Dimitro
Senior Associate
212-390-1641 jdimitro@sh-law.comFirm Insights
Author: Jesse M. Dimitro
Date: January 29, 2025
Senior Associate
212-390-1641 jdimitro@sh-law.comThe combination of lengthy leases and high rents means even small leasing disputes can have significant financial consequences. Both landlords and tenants must fully understand their rights and obligations under lease agreements and commercial property law. Scarinci Hollenbeck, LLC can assist with all of your commercial real estate needs.
Owning and leasing commercial property can be extremely profitable. However, to maximize your revenue, you must not only understand your legal obligations, but also be proactive in reducing your risk of liability.
Key commercial landlord responsibilities include:
While lease agreements largely govern the landlord-tenants relationship, commercial property law also impacts a landlord and tenant’s legal obligations. For instance, if your space is open to the public, you will likely need to comply with Americans with Disabilities Act.
Commercial property law often plays a more significant role when disputes arise. Commercial tenants have the legal right to receive all services set forth in their lease. They may file suit to enforce its provisions. Unlike residential tenancies, courts will not disregard clauses that unreasonably favor landlords. Both parties are presumed to have equal bargaining power. Commercial tenants are not protected by a warranty of habitability. They are also not protected by an implied lease provision to recover legal fees in an eviction.
A common middle ground for landlords and tenants is the use of Good Guy Guarantees.
Good Guy Guarantees often help avoid the need for litigation.
This provision in some lease agreements offers a clear path to lease terminations.
It also limits the personal liability of a guarantor if certain tenant conditions are met.
While commercial tenants are generally considered more sophisticated than their residential counterparts, many jurisdictions do have laws that protect them. For instance, the Non-Residential Tenant Harassment Law in New York City protects commercial tenants from harassment by their landlords.
Under New York City Administrative Code §22-902, “Commercial tenant harassment” is defined as “any act or omission by or on behalf of a landlord that (i) is intended to cause a commercial tenant to vacate covered property, or to surrender or waive any rights under a lease or other rental agreement or under applicable law in relation to such covered property, and (ii) includes one or more of the following:
When eviction is required, commercial landlords must satisfy numerous requirements and obtain a court order via commercial eviction summary proceedings. Under New York law, a commercial landlord must give 60-day notice to vacate to month-to-month tenants who have been in a leased space for more than one year but less than two years. Meanwhile, 90-day notice is required for tenants who have been in a leased space for more than two years. The landlord must also serve a written 14-day rent demand before starting a summary nonpayment proceeding in court.
Residential landlords must comply with additional laws that protect tenants’ rights, which can also impact the eviction process. Missteps not only delay the process, but can also make it more costly.
Commercial leases can be incredibly complex, which increases the risk of legal conflicts. Below are some of the most common sources of landlord-tenant disputes:
Open communication and respectful dialogue are essential for a successful landlord-tenant relationship. Establishing clear guidelines can also help prevent misunderstandings. When disputes do arise, it is often still possible to avoid litigation through negotiation, mediation, or arbitration.
When dealing with complex issues, partnering with legal professionals who specialize in landlord-tenant issues is crucial to avoiding costly legal battles. Scarinci Hollenbeck’s commercial property law attorneys advise landlords and tenants across the New York City metropolitan area and New Jersey. Our talented team has the skills and experience needed to negotiate enforceable leases that advance our clients’ interests and reduce the risk of costly legal conflicts. When disputes arise, we work tirelessly to achieve practical and cost-effective solutions while safeguarding our clients’ rights. Contact us today to understand your legal options.
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