Ending a Commercial Tenancy Agreement Early in the Fixed Term

Are you a commercial tenant looking to end your lease agreement before the fixed term is up? It’s not an easy decision, but sometimes circumstances change and you may have to leave sooner than expected. Here’s what you need to know about ending a commercial tenancy agreement early in the fixed term.

First, it’s important to understand that a lease agreement is a legally binding contract. Breaking the terms of the contract can lead to legal and financial consequences. However, there are some options available to commercial tenants who need to end their lease agreement early.

Negotiate with the Landlord

The best course of action is to try to negotiate with your landlord. Let them know about your situation and see if they are willing to work with you. They may be willing to release you from the contract if they can find a new tenant to take your place. Alternatively, they may agree to let you sublet the property to someone else for the remainder of the lease term.

Check the Lease Agreement

Before taking any action, make sure to review your lease agreement. Look for any clauses that may allow for early termination. For example, some leases have a break clause that allows either party to terminate the agreement after a certain period of time has elapsed. Other agreements may include provisions for early termination due to unforeseen circumstances, such as a natural disaster or fire.

Consider Paying a Penalty

If breaking the lease agreement is your only option, you may need to pay a penalty. This could be a fixed fee or a percentage of the remaining rent owed. Be sure to check the lease agreement for details on any penalties for early termination.

Document Everything

No matter what option you choose, it’s important to document everything. Keep records of all communication with your landlord, including any agreements made. If you sublet the property, make sure to have a written agreement with the new tenant. This will help protect you from any legal disputes that may arise in the future.

In summary, ending a commercial tenancy agreement early in the fixed term is a serious decision that should be approached carefully. Be sure to explore all options and consult with legal professionals if needed. Remember that communication is key, and negotiating with your landlord may be the best solution. Make sure to review the lease agreement and document everything to protect yourself from potential legal issues down the road.