How Can I Negotiate Early Lease Termination for NYC Rentals?

Leases are full of various terms and conditions whether you are renting out a commercial property or a new home. One thing that is probably included is what happens if you break the lease and leave early. There are often penalties associated with early lease termination, but there might not have to be. A New York City lease dispute lawyer may be able to help you negotiate for better terms in case you or your business need an exit clause.

What Normally Happens During a Lease Termination?

A lease termination is often associated with hefty fees and bad blood. Usually, a lease is supposed to be an ironclad agreement in which a tenant agrees to occupy a property for a set period of time. When a tenant breaks this agreement, that lease termination can leave a property owner without the income that they expected to receive.

A landlord usually protects themselves from such an event by making it painful to break a lease. However, this can also deter potential tenants who may require more flexibility. Is there a mutually acceptable agreement that can be reached?

Can I Negotiate Lease Termination Policies?

Sometimes it is possible to negotiate what would happen in the event of an early lease termination. You may be able to come to an agreement about when a lease could be exited early and how landlord and tenant can part ways amicably. It is important to establish:

The conditions for an early exit: It needs to be clear when a tenant can ask for an early lease termination. Is it only possible in the event of their business failing? Can a lease be transferred? Some leases even allow a tenant to exit early if occupancy levels have dropped to a certain level, like in a mall where anchor stores and many other businesses have already left.

The penalties for early lease termination: What does the tenant give up if they want to leave early? These costs should be outlined clearly in the contract so that a tenant cannot claim to be surprised later and a landlord cannot just pull fee amounts out of thin air.

Notice requirements: How long does the tenant have to tell the landlord about their plans to exit the lease? 30 days? 60? Establish this in the lease contract so there is no confusion.

Contact Our Law Firm Today

To be frank, negotiating for new lease termination and early exit clauses is not easy. Most tenants are going to struggle to bring a landlord to the table when it comes to this subject, but an experienced attorney may be able to assist you. This is why you should contact Robert Rosenblatt & Associates before you settle on any lease terms. Let us see if we can help you protect yourself and your business by opening up more options on your lease agreement.