After the collapse of the USSR and the emergence of a market economy, citizens and legal entities were able to appear in civil circulation as owners of commercial real estate, heirs, testators, sellers and buyers, donors and doneers. Over the years, the commercial real estate market has experienced unprecedented growth and development. Businessmen sought to acquire real estate in property and thus invest their earned capital. A number of economic crises of 1998, 2008, 2015 and other years have turned their eyes on the successful rental business of non-residential premises.
Despite a series of crises, rental is still popular today.
Investors are actively using the opportunities of the real estate market to save money in difficult times, and to receive long-awaited profit during the period of economic growth.
There are types of businesses whose main activity is the leasing of their own fund of non-residential premises. Such a business was for the time being considered stable, successful and predictable. The last decade has brought new subtleties to the legal and financial relations between the lessor and the lessee. Times have changed a lot, in the yard in 2020, all trade lives on the Internet, most businesses no longer need offices, any product can be inexpensively purchased online in China and other countries, the staff is confined to smartphones, the Internet, and a computer. Commercial real estate has fallen into a partial period of economic stagnation.
Now there are so many non-residential premises and landlords that the supply in this area is many times higher than demand, so the question of finding a financially stable, prosperous client - a tenant is economically feasible. For a well-paid tenant, a "commercial hunt" is unfolding.
Many landlords ask themselves: why do successful and stable tenants terminate the lease and go to other landlords or buy their own non-residential premises?
Relevant "problem of tenant retention" on a long-term basis.
Many do not succeed.
Tenants leave, and the landlord does not understand the reasons for their departure and sees only the fact that the tenant has to pay the rent and the lack of money seems to be the reason. Although in some cases this is not so. Ignorance of the specifics of the business of a particular tenant leads to the fact that the form of a lease agreement for non-residential commercial premises is not suitable for specific parties, their form of business and the current economic situation.
Thus, one of the reasons for the loss of the tenant as a client is the provisions of the lease agreement for non-residential commercial real estate.
A lease agreement for non-residential commercial real estate is a written document, which, firstly, confirms the fact of lease relations between the lessee and the lessor. Secondly, it contains a balance of interests of the parties. Thirdly, it should be easy to enforce in practice and be profitable, not losses and litigation.
The noted nuances, at first glance, are simple and obvious to everyone, but in legal contract practice they are accompanied by a huge amount of legal work, which should take into account the following aspects:
The style and methodology of writing the text of the contract.
The cornerstone of a commercial real estate lease is the style and methodology of writing this document. In legal practice, they use various forms and samples, sources from the Internet, advice from friends, help from colleagues and much more. It is the text of the contract that should be maximally adapted to specific parties and features of their business. Otherwise, the contract may be good for everyone, but not for the tenant and lessor. And if some form of contract is ideal in one region and in a particular shopping center, then the same form, with all its advantages, can give legal and financial failures (losses) between other persons and in relation to other regional commercial real estate.
Security payments and fines.
At present, the presence of a security payment and interconnected fines in the contract is a fashionable trend. This condition is in most contracts, it has its pros and cons. Pros: protection of the financial interests of the landlord, the possibility of additional income. Cons: a steady loss of financially promising tenants, reputational risks for the lessor and, as a result, empty retail space.
Termination of the contract unilaterally out of court.
The mechanism for terminating the lease of non-residential commercial real estate must be balanced and take into account the interests of both parties. In legal practice, contracts may occur when the tenant is placed in such conditions when a unilateral termination of the lease must be planned and clearly observed in time. In turn, this does not allow the lessee to quickly change the place of business or trade, and the lessor cannot also quickly find a new rent-tor. Despite the profitability for the lessor of the time extension of this process, it does not bring anything more than losses and unnecessary costs. As a rule, the tenant terminates the lease for various reasons, one of which may be market conditions, therefore, a positive financial result for the lessor may be lost. Usually landlords do not find out these nuances.
A complex mechanism for calculating rents and other payments.
A feature of the mentioned lease agreements is the complex mechanism of charging rents and other payments, which can be understood in the subtleties of the lessor. In these situations, the tenant should carefully read and correct such formulations, since they can incur significant losses beyond the verbal beauty and figure of mathematical formulas.
Security deposit, retention of property (goods).
The security deposit has a stable tendency, from the point of the contract, not to return back to the tenant at the time of termination of the contract. The landlord is trying by any means and language to keep it at home. There are many reasons for this. There are many legal and financial arguments, both in favor of the tenant, and in favor of the landlord. Retention of the tenant's property (goods) on the rented area is a way to ensure the fulfillment of obligations, which is essential for the dynamics of the tenant's business.
Thus, a lawyer can provide qualified legal assistance to tenants and lessors in the preparation, editing and other legally relevant actions, the basis of which is the rental of commercial real estate.