Sep
01
Do I have to honor a commercial lease after going out of business?
By
My lease on this retail space is 5 years, after 2 years I have gone out of business.The lease is for 6500.00 a month to what xtent do I have to honor the lease?The bad economy is the culprit and the landlord is no being nice, infact he is being greedy saying that it is not his fault but I am sincerely out of business and I would not to see my personal property affected.What can I do?
Quick House Sale
Related articles:
- I have a business lease on a shop which did not haveVAT. now the Landlord is adding Vat which i cannot afford? I really want to know if i can get out of the lease as i cannnot afford the lease with VAT on and also my landlord wants to back...
- Can my landlord terminate my business lease early? I have had an argument with my landlord, and he is threatening to kick us out of our shop. Can he do this? We have 3 years left on...
- Can I break a commercial lease if the government closes my business? I lease a storefront and operate a payday advance business from it. The State government recently passed legislation which forces me out of business because they reduced the fees...
- How to void a 2 year commercial lease if your business is downhills and your landlord refuses to negotiate? We signed a 2 year-commercial lease a couple of months ago. Our business is not doing well; and need to void the contract. Our landlord refuses to negotiate. Our...
- Want to close my shop, can pay all creditors. But lease contract goes another 2 years. Liquidation avoidable? I run a shop but must close. I have enough money to pay all creditors. Only the lease contract with my landlord goes on for another 2 years. No...
4 Comments
July 13th, 2009 at 10:32 am
It isn’t his fault. How do you expect them to stay in business without rent? It’s business, not personal. You signed the lease for 5 years, you agreed to pay for 5 years.
Now, as far as how to get out of it… see if you can find someone to assign the lease or business to. If you find someone else to take over the lease, the Landlord may let you out of it.
July 14th, 2009 at 11:15 pm
Yes, you have to honor the lease and if you don’t, he can take you to court and have your wages garnished, etc. Just because the business failed does not mean that you get out of your responsibility to pay.
July 17th, 2009 at 4:19 pm
If you personally guaranteed the lease, then you’re liable. If your business was a limited liability corporation, then you may not be liable.
July 18th, 2009 at 8:04 am
Was your business a LLC or S-Corp, a partnership or were the sole proprietor? Did you personally guarantee the lease? Did your business or yourself declare bankruptcy or do you plan to? Those questions need to be answered first.
If you were the personal guarantor and neither you nor the business have declared bankruptcy he can file suit against you for actual damages but not for the duration of the lease unless it is vacant for the full 5 years. After he does so you need to take a look at all your options. Your failed business has probably caused other unpaid debts as well. Then you have to decide to pay up as the loser of this and any other suits or declare bankruptcy.
That is the short version. Good luck.