Expert: Brian Bocchieri - 10/17/2008

Question
Hi,
  I'm on the board of a nonprofit agency that depends solely on donations.  We have an office in Butler, Pennsylvania.  We are in the 3rd year of a 5 year lease.  We are coming to the point where we won't be able to continue paying rent.  The lease says if we break it we must pay for remaining time.  We can't.  Can you give me help in how to approach the landlord to let us out of the lease.

Answer
I am sorry for the delay Don;

To answer your question the best avenue which I am sure you have tried is speak to the landlord to discuss your situation.  You may be able to work out a lower payment now and when things get better you can step the payments up.  Be honest with the landlord and try to come to some type of agreement.  If your market is strong he maybe happy to let you out of the lease in order to rent it to a higher paying tenant(this is not the case in most markets).

You are both in a difficult position at this point.  Is there a way for you to lease the space out to another tenant and they can continue your lease term?  this would help both you and the landlord and the new tenant if you have favorable lease terms.  Your landlord would much rather keep you in the space if it is at all possible.

I hope this helps I am sorry for your situation I hope you would be able to come to terms.

Wishing you all the best

Brian Bocchieri