When your business is struggling or you’re trying to move to a new lease elsewhere, you may need to break your lease. Usually, there is a part of the lease that goes over what you need to do if you want to break it, such as paying a termination fee or covering rent until a new tenant takes over.
Before you break a lease with your current landlord, there are several things to consider. You should make sure that breaking your lease is worth the cost, negotiate with your landlord and understand your obligations through your lease contract.
Is breaking the lease worth the cost?
The first thing you need to think over is if breaking the lease is worth the cost of ending the contract early. For example, if you will save $500 a month with a new lease but have to cover your old lease at $1,000 a month for six months until it runs out, then the move may end up costing you more than it’s worth in the short-term. However, if you believe you’ll see a large increase in profits or be able to find a replacement tenant, then you could decide it’s worth the expense.
Negotiate to end your lease
If you’re going to end your lease, talk to your landlord. They may be willing to work with you despite what your contract says. They may even help find a replacement tenant to get you out of the lease early, which could help you save money.
Understand your obligation
Finally, understand your obligations. You did agree to the lease and its terms. If there are issues with your landlord not covering maintenance or utilities as agreed, then you may have a way out of the lease without penalties.
If you’re breaking your lease early, get to know your legal rights
These are a few tips for breaking your commercial lease. Make sure you know your legal rights and obligations before you terminate a lease, so that you can walk away from this situation with a good reputation and be able to move forward without unnecessary expenses.