Before deciding to terminate your commercial lease early, it is important to weigh the pros and cons of this decision. Here are a few things to consider, as suggested in the article, Advantages to an Early Commercial Lease Termination:
- If your business can no longer afford the space you are in, you will be freed from rental payments, as well as financial responsibility for utilities, maintenance, etc.
- You will be freed from legal ties to your landlord.
- You will be able to move anywhere you need to.
- If you do not observe the correct legal procedures, you might still be held to your lease responsibilities even if you leave the space or your business shuts down.
- If your landlord finds you to be in breach of contract, you could face significant legal consequences including paying the full rent on your lease at once, incurring major financial damages, and dealing with attorney fees.
If you are thinking about breaking your lease, make sure you talk to a lawyer to make sure you are following the proper legal steps. Your lease might have provisions that allow you an early way out if you find yourself financially unable to continue in a space, but if you do not adhere to the proper provisions you could find yourself incurring even more of a financial burden.