| 1. |
Try to renegotiate with your
landlord. If you can't fulfill your terms of the
lease, you'll need to try to renegotiate with the
landlord. It is, after all, in the landlord's best
interest to be paid what is contractually due. However,
you might ask the landlord to terminate your tenancy so
that you're no longer liable for future fees. Also, you
could ask your landlord if you can find a replacement
tenant in exchange for a release from your financial
obligations. Offering to place an ad in your local
newspaper is one way to demonstrate your goodwill. |
| 2. |
Get it in writing. If your
landlord does agree to release you from your lease, make
sure you get this in writing. You'll want to make sure,
for instance, that the landlord signs a new lease with
the new tenant. Hold on to the paperwork for at least
three years; you might want to consult with your
attorney on that point. |
| 3. |
Consider subletting. If your
landlord is stubborn and prefers not to renegotiate,
consider subletting the space to someone else. Again,
make sure you get everything in writing and consult with
the landlord so that you know what he or she expects
from this new arrangement. Remember, your name will
still appear on the contract, so you could be
liable. |
| 4. |
Open your wallet. If you do break
a lease in the middle of the term, be prepared to pay
for the remaining payment, or, in lieu of that, a
penalty for breaking the lease. Just because you don't
want the space anymore doesn't mean that the landlord
doesn't want his or her money. Remember, when you signed
the lease, you made a promise. This might all sound very
simple and obvious, but often even the most well-meaning
entrepreneurs forget that their vendors are in business,
too. |
| 5. |
Conduct some intelligence
gathering. Once you inform the landlord that you
plan to break the lease, find out what you can about his
or her efforts to find a replacement tenant. |
| 6. |
Consider the penalties. It may be
easy to ignore a piece of paper, but a signed contract
is binding. A standard penalty may mean forgoing your
security deposit and paying the remainder of the rent
owed until the landlord finds a replacement tenant. And
don't forget: word travels fast — a bad reference from a
landlord or just a disparaging word about your ethics
could minimize your opportunities for renting new space,
especially if you want to relocate nearby. |
| 7. |
Invest in some legal advice. It
doesn't take long for an attorney to review a lease, so
make the wise choice by investing in some legal advice.
It could save you a bundle in the long run and you're
likely to learn something that you'll be able to use in
the future. |
| 8. |
Take notes. You may be out several
thousands of dollars for breaking a lease. That's the
bad news. The good news is that this doesn't have to
happen again, especially if you keep good records — a
solid chronology of events. For example, if the main
reason you're leaving the property is because of space
limitations, be particularly cognizant of your square
footage needs the next time around. If you missed a
specific clause in the leasing contract, one that will
heavily impact your wallet, make sure that the next
document you sign has been carefully reviewed.
|
| In addition, make sure to read these
articles: |
| ● |
Questions
to Ask Before You Sign a Commercial Real Estate
Lease |
| ● |
Can
I Get Out of a Commercial
Lease? |
| ● |
Securing
the Right Amount of Space for Your Growing
Business |
| ● |
Understanding
Lease-Renewal Options |
| ● |
Advantages
to Leasing Your Office Space |
 |
Breaking a Business
Lease
|
