Business Law

West Palm Beach Florida Commercial Leasing Agreement



Florida Commercial Lease Agreements
Florida Commercial Lease Agreements

In our previous post on Florida Commercial Lease Agreements and Negotiations, we began looking at some of the important issues businesses need to consider when negotiating a Florida commercial lease. As we noted, terms related to default and eviction are particularly important to clarify and negotiate, where possible, so that a business is not blind-sided and understands both its rights and the landlord’s rights.

With respect to default, Florida commercial landlords have the right under Florida law to obtain possession of a commercial property when the commercial tenant defaults on rental payments. Commercial landlords can recover possession of a leased property under several circumstances: when the tenant abandons the property; when the commercial tenant surrenders possession of the property; and in a court action for possession or on another issue relating to possession of the property, such as an eviction for a non-monetary default of the terms of the lease.

Florida Commercial Lease Agreements

Commercial evictions is an area where a business needs to be aware not only of the terms of the proposed lease agreement for their leased commercial property, but also Florida State Law. Under Florida Statutes, Chapter 83, Part I, Florida Commercial Landlords have the right to remove their commercial tenants when they remain in possession of the property without the commercial landlord’s permission after the expiration of the lease. The length of the lease, and the proper procedure for renewal, are therefore important to clarify and negotiate. Typically, Florida residential leases last for one year, but Florida commercial lease agreements can last for many years with several option periods for renewal.

Florida Commercial Landlords may also seek an eviction for possession when their commercial tenant defaults on monthly rental payments after receiving notice to make the required payment due under the terms of the lease. The proper procedure for renewing the lease should also be clearly laid out in the commercial lease and businesses need to be aware of their notice rights under state law.

Florida Commercial Eviction
Florida Commercial Eviction

Businesses should, of course, always work to remain current on rental payments, but there may be times where this isn’t always possible. By law, commercial landlords can effectively waive their right to evict a commercial tenant by accepting past due rent payments with the knowledge that the tenant is in breach by nonpayment. Negotiation with the landlord after defaulting on rent can, therefore, sometimes allow a tenant to avoid eviction.

Commercial landlords may also evict a tenant for remaining in possession of the property after failing to correct a material breach of the lease agreement or related verbal agreement, so businesses need to be aware of their duties under the contract, particularly duties that are material to the contract. Clarifying these duties upfront can help avoid potential problems. By the same token, though, tenants do have the legal right to withhold rent payments in cases where the landlord fails to maintain the property in safe and workable condition.

We’ll look further at this issue in a future post, and how experienced Real Estate Attorneys can help businesses in such cases. Before entering into a West Palm Beach Florida Commercial Leasing Agreement, call your Lantana Florida Real Estate Attorneys at the Law Office of Ryan S. Shipp, PLLC today @ 561.699.0399 to see how we can help. We are located in Lantana, Florida. We serve Landlords and Tenants throughout the entire State of Florida.

See Part I of this article.