Having a lease that protects your rights as a Landlord or owner is not something that should be overlooked. While a lease is designed to protect both the Landlord and Tenant there are many aspects of commercial leases that can help to protect you should something go wrong. One of the most shielding clauses allowed in Pennsylvania(but not allowed in New Jersey) is called a Confession of Judgment yet too many commercial leases fail to have this important safeguard. A landlord is also entitled to have the business owner(s), or other principle(s), sign a Personal Guaranty wherein that person(s) guarantees that if the business fails to make the payments they will be personally responsible to make payments. It is not enough to just have these clauses in a lease. It is very important to have them drafted correctly and to educate your employees as to what must be done. A Confession of Judgment Clause in a commercial lease is virtually useless unless the Tenant signs or initials that specific clause in acknowledgment that it is contained in the lease. Other overlooked clauses include protection articles regarding proper notice to landlord, CAM and insurance adjustments and attorney fees.
A commercial lease is a device that can bring endless revenue for an owner. Call The Law Offices of Lee M. Herman, Esquire to make sure that you have the best lease for you.