Q: Can the property owner for my business refuse to grant me a lease if I don't renovate their property?
I've been trying to negotiate terms with them since 2010, however, they have communicated to me that unless I remodel the restrooms and some other items that they will not grant me a term lease because they think they should be renovated and I don't have the money to completely remodel at this time. I recently spent most of what I have for repairs to redo the below floor plumbing in their property but now I'm tapped. Is it normal to withhold a lease if the tenant is not able to renovate? All systems are currently working properly and there are no issues. Thank you.
A:
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.
Generally, your commercial landlord is under no obligation to enter a lease with you (unless you have an option to renew lease and you properly exercise the option). The lease is a contractual relationship, and the two sides can negotiate the terms. It is not very common for a landlord to require property remodeling as consideration for entering a new lease, but it would not be illegal for your landlord to choose remodeling work as consideration. If you are a month-to-month tenant, either you or the landlord can terminate the tenancy with a proper 30 day notice. Be sure to consult your own attorney to protect your legal rights.
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