When you sign a commercial lease in New Jersey, you expect that the contract will protect your business and provide stability for the future. Unfortunately, commercial lease disputes are a common reality for both landlords and tenants. Whether the disagreement involves unpaid rent, property maintenance, or how a space can be used, these disputes can put enormous financial pressure on your business.
At the Law Offices of Howard N. Sobel, we understand how disruptive these conflicts can be. For more than four decades, our firm has represented landlords, tenants, and business owners throughout South Jersey in resolving commercial lease disputes. Knowing your rights, the steps you can take, and the legal options available is critical to protecting your investment and avoiding costly mistakes.
Common Reasons for Commercial Lease Disputes in NJ
Commercial leases are often lengthy and full of detailed provisions. While these contracts are designed to prevent misunderstandings, disputes still arise when terms are unclear, ignored, or misinterpreted. Some of the most frequent causes include:
- Nonpayment of rent: Late or missing rent payments are the most common source of conflict. Landlords rely on timely rent for operating expenses, while tenants may dispute increases, offsets, or claim financial hardship.
- Maintenance and repairs: Leases often allocate responsibility for repairs and upkeep between the landlord and tenant. Disagreements arise when one side believes the other has failed to uphold their obligations, such as repairing HVAC systems, roofs, or plumbing.
- Use of the premises: Many leases contain restrictions on what a tenant can do with the space. If a tenant uses the property in ways outside the agreement, or if a landlord tries to restrict legitimate use, disputes can follow.
- Subleasing and assignment: Tenants sometimes want to transfer their lease to another business. If the landlord refuses approval, or if subleasing happens without consent, this can trigger legal issues.
- Lease renewals or early termination: Disputes often surface when a tenant wants to stay but the landlord refuses renewal, or when a landlord claims the tenant improperly ended the lease early.
- Common Area Maintenance (CAM) charges: Many commercial leases require tenants to share costs for common spaces. Disputes arise when landlords fail to provide accurate accounting or when tenants believe charges are excessive.
These issues are not only frustrating but can also threaten the financial health of a business. Addressing them quickly and strategically is essential.
First Steps if You’re Facing a Lease Dispute
If a conflict with your landlord or tenant arises, you should not ignore it. The way you handle the early stages can affect the outcome of the dispute.
Review Your Lease Agreement
- Carefully read the contract to identify what each party is obligated to do. Many disputes come down to the specific language in the lease.
- Check for dispute resolution clauses, notice requirements, or deadlines that may apply.
Document the Issue
- Keep copies of all relevant communications, such as emails, letters, and invoices.
- Take photographs or videos if the dispute involves property conditions or maintenance problems.
- Maintain payment records to prove compliance with your obligations.
Attempt Communication
- Many disputes can be resolved by open discussion. Approach the other party with a professional, solution-focused mindset.
- If direct communication fails, having an attorney communicate on your behalf often makes the other side take the matter more seriously.
Avoid Escalating the Conflict Prematurely
- While it may be tempting to stop payments, change locks, or take other drastic action, doing so without legal guidance can weaken your case and expose you to liability.
Legal Options for Resolving Commercial Lease Disputes
If informal efforts fail, the law provides several avenues for resolution. The best approach depends on the type of dispute, the lease terms, and your long-term goals.
Negotiation
In many cases, disputes can be resolved through negotiation. A skilled attorney can often help parties reach a fair compromise without the need for court intervention. Negotiation is typically faster and less expensive than litigation.
Mediation or Arbitration
Some commercial leases require mediation or arbitration before either party can file a lawsuit. Mediation involves working with a neutral third party to reach a voluntary agreement. Arbitration is more formal, where a neutral arbitrator hears the case and makes a binding decision. Both can be effective in avoiding lengthy litigation.
Litigation in New Jersey Courts
When alternative methods fail or are not required, litigation may be necessary. This can involve:
- Eviction proceedings: If a tenant is not paying rent or violating lease terms, landlords can pursue eviction through the courts.
- Breach of contract claims: Tenants may sue landlords for failing to uphold their obligations, such as maintaining the property or honoring lease renewal provisions.
- Damages and injunctive relief: Courts can award monetary damages or order specific actions, such as repairs or restoration of access to the premises.
Litigation is often a last resort, but it may be the only way to protect your rights when the other party refuses to comply. Because New Jersey is a judicial-eviction state, landlords cannot simply change the locks or remove a tenant on their own. Any removal of a commercial tenant must go through the courts, and only a court officer may carry out an eviction order.
Why You Shouldn’t Delay Seeking Legal Help
Timing is critical in commercial lease disputes. Waiting too long can have serious consequences:
- Missed deadlines: Many leases include strict timelines for giving notice, exercising renewal options, or raising objections. Missing these deadlines can cost you important rights.
- Financial losses that add up: Unpaid rent, unaddressed property damage, or unresolved use restrictions can quickly impact your bottom line.
- Weakened negotiating position: The longer a dispute goes unresolved, the more entrenched the other party may become, making resolution harder.
Early involvement of an experienced attorney can help you avoid costly mistakes, preserve your options, and strengthen your negotiating position. It is also important to note that if the tenant is a business entity such as an LLC, corporation, or partnership, New Jersey courts require that the tenant be represented by an attorney in landlord-tenant proceedings. This legal requirement underscores why consulting counsel early is so critical. In many cases, attempting to handle the dispute alone is not an option.
Protecting Your Business Interests with the Law Offices of Howard N. Sobel
At the Law Offices of Howard N. Sobel, we know how high the stakes can be in a commercial lease dispute. Our firm has decades of experience helping clients resolve conflicts through negotiation, mediation, arbitration, and litigation. We represent both landlords and tenants, always with a focus on protecting our clients’ financial interests and minimizing disruption to their businesses.
What sets us apart is our practical, cost-effective approach. We know that not every dispute needs to go to court, but when litigation is necessary, we have the knowledge and skill to advocate aggressively for your rights.
Whether you are a landlord dealing with a tenant who refuses to pay rent or a tenant facing unreasonable demands from your landlord, our firm can help you find the right path forward.
Take the Next Step Toward Resolving Your Lease Dispute in South Jersey
Commercial lease disputes in New Jersey can be complex and stressful, but you don’t have to face them alone. By understanding your lease, documenting the issue, and seeking legal guidance early, you can protect your rights and your business.
At the Law Offices of Howard N. Sobel, we help landlords, tenants, and businesses throughout Camden County, Gloucester County, Burlington County, and Atlantic County, including Cherry Hill, Voorhees, Marlton, and Atlantic City, resolve commercial lease disputes effectively and efficiently.
If you’re facing a conflict over a commercial lease, contact our office today for a consultation. We will review your situation, explain your options, and work with you to pursue the best possible outcome.
Disclaimer: The information provided in this blog is for general educational purposes only and should not be taken as legal advice. Reading this article does not create an attorney-client relationship with the Law Offices of Howard N. Sobel. Every case is unique, and you should consult with a qualified attorney to discuss the specific circumstances of your situation.