Q & A Table of Contents
Is This Rent Deal Fair?
From: Philip, Philadelphia, Pennsylvania
Question: Can a person who has a lease for his law office charge a new tenant for renovations that were made to the law office 4 years prior if the new tenant is now moving a tanning salon in to the law office with a completely new lease?
Understand that the lawyer does not own the building where the law office and now tanning salon is. Also the lawyer volunteered to move his business because he is part owner of the tanning salon, and it allows him to set up his practice at a lesser cost to him in a building that he purchased.
He was paying $1300. in the area where the salon now is. He is paying $300.00 in the building he now owns. He was not forced out; he volunteered because it helped him as well as the salon.
PS. If this sounds complicated it is but any help you can offer will be greatly appreciated. This is breaking up my family. If you can also cite the law that covers this it would help.
Response: While it is not clear from your question exactly what your position is in this scenario, there is one fundamental thing to keep in mind: No one can force the Tanning Salon owner to agree to an unfair deal.
It could make sense to look for different locations to get a sense of the fair market value of the space for the Salon. In addition, while it means spending money, I would recommend finding a competent real estate lawyer to help the Salon owner understand the legal issues that may be involved in the rental agreement.
If the lawyer who's renting the space to the Salon is also a part owner, one must question the wisdom in his decision to burden the Salon with a high rent. If the Salon goes out of business and the rent is a relevant factor to that failure, the landlord/lawyer has not done her/himself any favors.
It is important that the Salon owners be protected from personal liability on the lease; if the business is not a success it would be bad news if the rental obligation continued to be a burden on the Salon owners. Of course the landlord deserves a certain amount of protection or guarantees, particularly if his investment in the space reflects any changes made to allow for the Salon's occupancy.
A family problem associated with a business deal sounds like trouble. Getting a disinterested outsider, such as a lawyer, involved in making the deal could save the family a lot of long term aggravation -- and that could be worth a lot more than the cost of a lawyer.
Good luck,
Steve
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