Ohio companies that are looking to rent commercial space can typically choose between gross leases and net leases. A gross lease requires the landlord to pay for building maintenance, property taxes and insurance premiums. However, tenants can expect that a portion of their monthly rent payments will be used to pay some or all of those costs on a landlord’s behalf. Those who agree to a net lease will generally be required to pay maintenance, property taxes and insurance premiums themselves.
However, their monthly base rental payments will likely be lower than they would be if they had a gross lease. Net leases may be preferable for those who are renting newer buildings that are less likely to need significant repairs or other upgrades. Gross leases are generally preferable for professional service companies such as lawyers, accountants or doctors.
In some cases, landlords may agree to modified net leases. In such a scenario, a tenant would make a base rental payment each month plus a percentage of their monthly or yearly revenues. It is important to note that prospective tenants have significant leeway when it comes to negotiating the terms of a commercial lease. Therefore, it may be possible to tailor a gross or net lease to their specific short and long-term needs.
If the terms of a commercial lease are violated, the parties to the deal may seek to resolve their dispute in court. A real estate litigation attorney may help a tenant or landlord obtain a favorable outcome in the matter. Favorable outcomes could include having a lawsuit dismissed or allowing a tenant to back out of a deal without incurring any financial penalties. Real estate contract disputes may be settled outside of court even if a lawsuit has been filed.