Negotiable Lease Terms for Restaurant Tenants

As explained in a previous article, tenants should always have a lease in writing, and depending on the state in which the premises lies, other requirements may affect the validity of your lease. Aside from state-specific requirements and essential terms (parties, monetary obligations, premises and length of the term) needed to validate your lease, restaurant tenants must also be wary of landlord-friendly leases.

One big mistake tenants make is signing a lease without understanding the obligations and consequences provided within the lease. Paying close attention to specific obligations and negotiating tenant-friendly terms is imperative prior to executing a lease.

Common Negotiable TermsRenewal Rent Increases – Typically, it is best for the tenant to have a fixed amount for rental increases. A renewal provision providing rent increases to be “fair market value” is risky and uncertain. With a fixed amount established, negotiating down the fixed amount when it’s time for…