5 Protections a Landlord Wants in Any Long Island Lease
Landlords of commercial property are typically the more sophisticated party when it comes to Long Island lease agreements. Yet, even landlords that have negotiated dozens of lease agreements and worked with several tenants can miss or mistake key clauses in a Long Island lease.
Whether you are tackling your first lease or your fiftieth, here are five protections you can’t forget to include.
#1: Limits on the Permitted Use of the Property
Every commercial tenant rents a property with a specific use in mind. It could be the start of a retail business or used as storage space. Maybe the tenant intends to have a cryptocurrency startup or an Italian restaurant. As the landlord, it is essential that you understand the tenant’s intended use of the property. It is equally important to restrict the tenant’s use in a Long Island lease.
One clause that must be in every commercial lease is a paragraph or statement on permitted use. This particular clause should specify the tenant’s intended use under a Long Island lease and then restrict the use of the property to that intent or similar business venture. This limits a landlord’s exposure to unknown activity on the property, high-risk businesses, use in violation of the property’s zoning, or illegal use of the property.
#2: Restrictions on Subletting a Long Island Lease
You want to know exactly what an entity or individual is occupying your property. In many instances, a landlord wants to restrict occupancy to the tenant named in a Long Island lease. Why? This limits misuse of your property and prevents substantial problems on your property. A landlord is able to control occupancy of a particular building or space by including a restriction on subletting.
In most Long Island lease agreements, this restriction prevents the tenant from subletting or transferring the lease to any third party without the written consent of the landlord. Under this restriction, you can vet a potential new tenant and ensure the new tenant is solvent and going to pay rent.
#3: Right of Entry in an Emergency
Once a tenant has leased a property through a Long Island lease, the landlord has limited rights to access and enter the property. In fact, entering the property without the tenant’s permission could be a default under the lease or even criminal trespassing. Even though you are the owner of the property, you have effectively signed over the right to use and access the property to the tenant.
What happens in the case of an emergency? The longevity of a property still rests on the landlord and when there is an emergency or substantial maintenance issue, it is imperative to enter the leased space for repairs or clean up. If you have a clause in the lease allowing this right of entry, then it makes these instances much more clear cut and avoids disputes over an illegal entry.
#4: Tenant’s Insurance Obligations
All of your commercial tenants should carry a primary insurance policy. This policy should include general liability insurance and you should require a certificate of insurance before turning over the space or signing a Long Island lease. As well, many Long Island landlords are requiring tenants under a commercial lease to carry business liability insurance and business interruption insurance, as a protection against the business failing to have steady revenue or business operations.
In the case of a residential lease, every landlord should require tenants to have renters insurance to cover, at a minimum, their personal property.
#5: Failure to Pay Rent Is a Default
Finally, you want to do everything possible to protect your financial investment in a Long Island lease, which includes first and foremost, ensuring the condition of your building, and secondly, payment of monthly rent. If a tenant under a Long Island lease fails to make regular monthly payments, you need to take action. Many of your rights as a landlord are dictated by your lease agreement, making it imperative that you specify failure to pay rent as a default under the lease.
Uncertain how to write these clauses into your current Long Island lease? Contact us at the Law Office of Samilde Perez – located right here on Long Island.