Commercial Real Estate Investment/COMMERCIAL LEASE EXPIRED

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Expert: - 8/27/2008


Question
HELLO,
I HAVE A COMMERCIAL LEASE THAT EXPIRED 7/31 I PAID RENT THAT MONTH.ITS BEEN A NIGHTMARE OF A LEASE OUR LEASE INCLUDED OUR AC WELL THAT WAS BROKE AND COST THE LANDLORD TONS OF MONEY, WE COMPLAIN EVERY MONTH OF OUTRAGEOUS ELECTRIC BILLS DEALING WITH THE AC PROBLEMS.WE FINALLY GOT A NEW ADDITIONAL UNIT THE 1ST WEEK OF JULY. OUR LANDLORD STATED WE CAN GO MONTH TO MONTH. THE LAST WEEK OF JULY WE STARTED HAVING PROBLEMS WITH BREAKERS TRIPPING SO WE CALLED OUR LANDLORDS OFFICE AND LEFT MESSAGES 3 HOURS LATER HE DRIVES BY WITH HIS WIFE AND WAVES.SO I CALL HIS OFFICE AGAIN.HE FINALLY SHOWS UP AND ASKS AN EMPLOYEE IF HE CALLED FPL HE STATES NO THE LANDLORD ASKS ME AND WELL I WAS PISSED AND SAID NO ITS APPARENT ITS A PROBLEM IN HERE NOT WITH FPL OR ELSE NOTHING WOULD WORK. OUT OF AGGRIVATION IN MY 5TH HOUR I STATED I WAS GIVING MY 30 DAY NOTICE.THE FOLLOWING MORNING MY HUSBAND CALLED THE REALESTATE AGENT THAT GOES ON TO SAY ITS RENTEDWE NEED TO GET OUT (THIS IS THE SAME AGENT WE CALLED TO RENT)THE AGENT THEN THE FOLLOWING WEEKEND TRIES TO GET ME TO SIGN A MUTAL AGREEMENT TO TERMINATE THE LEASE I STATED IT NEEDS 2 SIGNATURES THE ONES THAT SIGNED.BASICALLY ALL SUMMED UP WE ARE NOTIFIED BY EMAIL WE HAVE TO VACATE BY THE 31ST. NO NOTIFICATIONS ( VIA CERTIFACATION FROM THE LANDLORD). DO WE HAVE ANY RIGHTS AS BEING A MONTH TO MONTH TENANT NOW THAT OUR LEASE IS EXPIRED? CAN HE THROW US OUT? SHOULD I NOTIFY HIM I WANT TO STAY?HELP ANYONE!!!!

Answer
Michelle-

I an not an attorney and cannot therefore provide you with any legal advice, however, in most - not all - jurisdictions, a LANDLORD or his agent must give a month-to-month tenant a minimum of 30 days WRITTEN notice on or BEFORE the 1st day of a month.

If you were advised to vacate the premises AFTER the 1st day of the month, you probably have 30 days from the 1st day of the NEXT month to be out of the premises.

It may be that the agent asked you to sign an written agreement to terminate the lease because the landlord wants to have a binding written agreement that he can rely on.  This way he knows that you actually will be moving out before re-leasing the space to someone else.

You have few rights as a month-to-month tenant that has been given notice to vacate - if, in fact, the landlord gave you notice correctly.  It seems from your narrative that your landlord is un-likely to extend your occupancy of the premises, however there is no harm in asking him.    

You should review your lease situation with a local attorney to determine what the law is in your situation and if you have any further options at this time.

Good luck.

Commercial Real Estate Investment

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Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.

Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.

Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".

Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.

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