What Are Your Rights in a Commercial Lease Dispute?
At StachlerHarmon Attorneys at Law, we understand that dealing with a commercial lease dispute can be both stressful and confusing. As business owners, property managers, or tenants, we may find ourselves facing unexpected challenges in interpreting or enforcing our lease agreement.
Knowing our rights and understanding the legal options available is crucial in making sure that we don't lose out on the opportunity to resolve the dispute in our favor. A commercial lease dispute can involve a variety of issues, such as unpaid rent, failure to maintain the property, or breach of terms outlined in the lease.
Let’s explore the rights and protections available to us in Ohio when facing a commercial lease dispute.
What Is a Commercial Lease Dispute?
A commercial lease dispute occurs when disagreements arise between a landlord and a tenant over the terms of the lease. These disputes can take many forms, including non-payment of rent, issues with property maintenance, eviction threats, and more. In Ohio, commercial leases are governed by state law, and both parties have specific rights and obligations under the lease.
For tenants, understanding their rights in a commercial lease dispute is essential in avoiding unnecessary penalties and legal complications. Landlords, too, have a legal right to protect their investment, but they must follow specific procedures when it comes to enforcing the lease terms. By understanding the specifics of the dispute and the laws that apply, both parties can resolve the issue efficiently and fairly.
Rights of Tenants in a Commercial Lease Dispute
When a commercial lease dispute arises, tenants have specific rights designed to protect their interests. Ohio law provides tenants with protections against unlawful eviction, unreasonable lease terms, and failure of the landlord to maintain the property. Here are some of the key tenant rights to consider:
Right to a Written Lease Agreement
Written contracts are mandatory: Ohio law mandates that all commercial lease agreements must be in writing. This agreement should clearly outline the terms and conditions of the lease, including rent amounts, lease duration, maintenance obligations, and the rights and responsibilities of both parties. In the event of a dispute, the written lease serves as the primary reference point for resolving the issue.
Right to Fair Treatment
Protection against discrimination: Landlords cannot discriminate against tenants based on race, religion, gender, or other protected characteristics. In the case of a commercial lease dispute, a tenant has the right to seek legal recourse if they feel they are being treated unfairly due to discrimination.
Right to Possession
Access to the leased property: As long as tenants comply with the terms of the lease, they have the right to occupy and use the commercial property for its intended purpose. Landlords cannot evict tenants or interrupt their use of the premises without following proper legal procedures. In the event of a commercial lease dispute, tenants have the right to defend their occupancy.
Right to Legal Remedies
Seeking legal action: If a landlord fails to fulfill their obligations (such as neglecting property maintenance or refusing to make necessary repairs), tenants can seek legal remedies. This may involve seeking compensation for damages or, in some cases, terminating the lease agreement if the breach is substantial.
Rights of Landlords in a Commercial Lease Dispute
On the other hand, landlords also have rights when a commercial lease dispute arises. These rights protect the landlord’s investment and assure that the lease terms are followed. Here are some key landlord rights in Ohio:
Right to Receive Rent
Right to timely payment: Landlords have the right to receive rent payments on time as agreed upon in the lease. If tenants fail to pay rent, landlords can take steps to enforce payment, including issuing a notice of overdue rent and seeking legal action if necessary. If a commercial lease dispute involves unpaid rent, landlords have the legal right to pursue rent collection through court action.
Right to Enforce Lease Terms
Upholding lease agreements: Landlords have the right to make sure that tenants comply with all lease terms. If a tenant breaches the lease (for example, by using the property for purposes not allowed in the lease agreement), the landlord can take steps to correct the situation. This may include providing a formal notice of breach and taking legal action to resolve the dispute.
Right to Evict Tenants
Proper eviction procedures: If a tenant refuses to comply with the lease terms, including failure to pay rent, the landlord has the right to initiate eviction proceedings. However, landlords must follow proper legal procedures, including providing adequate notice and allowing the tenant the opportunity to remedy the situation before eviction occurs.
Right to Property Maintenance
Tenant obligations for property care: While landlords are responsible for maintaining the property’s structural integrity, tenants may be responsible for maintaining the interior or specific systems of the building. Landlords have the right to hold tenants accountable for damage caused by misuse or neglect.
Common Causes of Commercial Lease Disputes
Commercial lease disputes can arise for a variety of reasons. Some of the most common causes include:
Non-payment of rent: When a tenant fails to pay rent or pays late, the landlord may seek legal action for unpaid rent or terminate the lease.
Property damage: Disputes may arise if the tenant fails to maintain the property in accordance with the lease terms or causes excessive damage.
Lease term violations: If a tenant breaches a lease term (e.g., subletting without permission or using the property for an unauthorized purpose), the landlord can seek remedies or terminate the lease.
Failure to make necessary repairs: Tenants may dispute a landlord’s failure to make required repairs, especially if those repairs impact the tenant’s ability to operate their business.
Disagreement over lease renewals or terminations: Commercial leases often contain clauses regarding lease renewal, termination, or options for extending the lease term. Disagreements over these clauses can lead to disputes.
Unresolved maintenance issues: A landlord’s failure to provide essential services, such as plumbing, HVAC systems, or electricity, may lead to a commercial lease dispute.
How to Resolve a Commercial Lease Dispute
If you're facing a commercial lease dispute, it’s essential to address the issue promptly and professionally. Here are some steps that can help resolve the dispute effectively:
Review the Lease Agreement
Understanding the lease terms: Both parties should review the lease agreement to understand the rights and obligations outlined. This can help clarify which party is responsible for specific issues, such as repairs or payments. Having a clear understanding of the lease will allow both parties to approach the dispute with knowledge.
Communicate Directly
Open lines of communication: Often, commercial lease disputes arise due to misunderstandings or miscommunications. We recommend discussing the issues directly with the other party to clarify any misunderstandings. This may resolve the issue without needing to pursue legal action.
Mediation and Arbitration
Alternative dispute resolution: In some cases, parties may wish to resolve a commercial lease dispute without going to court. Mediation or arbitration can be an effective way to settle disputes outside of the courtroom. A neutral third party can help facilitate a resolution that is acceptable to both parties.
Seek Legal Action
Court involvement: If mediation or direct communication doesn’t work, the next step may be to take the dispute to court. Both landlords and tenants have the right to seek judicial intervention if they cannot resolve the issue themselves. An experienced attorney can help you determine the appropriate legal action based on your situation.
Settlement Agreement
Negotiated settlement: In some cases, parties can reach a settlement agreement outside of court. This may involve negotiation between the landlord and tenant, often with the assistance of attorneys, to resolve the issues amicably.
Contact Us Today
At StachlerHarmon Attorneys at Law, we understand the challenges that come with commercial lease disputes, and we are committed to providing our clients with knowledgeable and effective representation. If you're involved in a commercial lease dispute in Ohio, we can help you protect your rights and resolve the issue efficiently. Our office is located in Dayton, Ohio, and we serve Warren, Greene County, Clark County, Miamisburg, Butler County, and Preble County. Contact us today.