Can I get out of my commercial lease?

A question I was recently asked about a commercial lease was:

My business signed an office space lease three years ago, which expires at the end of this month. [Space 1]. Two years ago, the company took over the adjacent space, but never signed a lease. [Space 2]. Now, the company wants to relocate its office. Is there a way out of this lease?

My answer is:

Commercial leases, written and oral, are controlled by Part I of the Florida Landlord and Tenant Law. With respect to Space 1 for which the company has a written and executed lease, that contract expires on its own terms at the end of this month. If the company has already paid the rent and has not notified its intention to renew the lease on the terms that allow it, the company can continue to occupy the premises until midnight on the last day of the month. However, if the business wants to vacate sooner, you can approach the landlord and ask if the landlord will accept a prorated rent refund. If the landlord refuses to refund any rent, the business can still vacate anytime before the last day of the month, but may have to use the court system to obtain a refund and may only be entitled to a refund if the landlord takes possession and control of the premises for their own use and benefit. Recovery of the fees incurred in such claim can also be recovered if the business prevails and the lease so establishes. Fortunately, at least the costs are legally recoverable for the winning party.

Regarding Space 2 for which the business does not have a written lease and currently occupies, Florida law considers the business to be a month-to-month tenant at that location. Because the company has already paid the rent for this month, you can continue to occupy that location until midnight on the last day of the month. As with Space 1, if the business wishes to vacate now, the owner may be willing to voluntarily refund part of the rent paid for this premises, however, only if the owner assumes possession and control of the premises for his own use. and profit. Before the end of the term, the company will be entitled to a partial refund. The company may have to use the court system to obtain such a refund and, unlike the situation with Space 1, the company is likely not entitled to recover attorneys’ fees, but could recover costs if prevails.

In fairness to the owner, the business must provide a written notice stating that it intends to vacate both facilities on or before the last day of the month. The notice must correctly state that the business is providing it as a courtesy to give the landlord a full and fair opportunity to prepare to re-rent both facilities.

The Notice must include that the business is a month-to-month tenant in Space 2, that the written lease for Space 1 expires at the end of the month, and that the business does not intend to renew the lease in writing or extend your month. -Monthly rent. The Notice may request a prorated rent refund if the business agrees to move out before the end of the month, and may request that the landlord contact the business if they are willing to accept such an arrangement.

Also, if the business is unable to vacate by the end of the month and will require additional time, it can continue to occupy both facilities and will simply become a month-to-month tenant in Space 1 from the beginning of the next month. However, even if the landlord accepts the next month’s rent, keep in mind that the landlord can terminate that month-to-month lease and require the business to return the premises by the end of the next month. However, that landlord notice must be given in the first half of the next month, must fully comply with Florida Landlord and Tenant Law, and must give the tenant until the end of the next month to move out.

Therefore, the owner can terminate the business’s lease in Space 2 in the middle of this month or earlier and require that it be vacated before the end of the month, but cannot terminate the business’s lease in Space 1 in the same way due to the written lease. However, in order to avoid unnecessary lawsuit, it is probably best for the company to provide a written statement expressing its wishes and intentions just after the middle of the month, stating that it will be vacating before the end of the month or that it needs additional time. for the next month and would like to pay a prorated portion of the next month’s rent. If that notice is served by the business after the middle of the month, then the landlord cannot terminate the lease of Space 2 in response because the deadline for doing so under Florida Landlord-Tenant Law will have passed. However, naturally, early next month, the business must pay the rent in the same amount that it has been paying or the landlord will have the right to evict the business.

Additionally, Florida Landlord and Tenant Law and the jurisprudence interpreting those provisions provide for a shorter response time for an eviction of five days from the date of service and require the tenant to pay rent in the Land Registry. Court. If you do not pay the amount of rent alleged in the lawsuit in the Registry within that period or if you do not pay any amount in connection with an appropriate motion and in good faith to determine the amount owed, the landlord will be entitled to a default judgment for eviction and a court order for possession ordering the bailiff to place the landlord in possession of the property. This is separate and apart from any unpaid rent claim, which still adheres to the regular turnaround time under the Florida Rules of Civil Procedure.

In conclusion, the appropriate time to consult with an attorney who regularly practices commercial and commercial litigation is before your business receives an eviction. In this way, the company attorney can gather all the relevant facts, educate the company on its options, and negotiate an amicable resolution of the situation or develop a response to any eviction action that the owner may bring. Board certified commercial litigation attorneys are recognized by the Florida Bar Association as experts in this area of ​​the law.

To obtain Board certification, attorneys must establish their experience through a certain number of jury and non-jury trials, pass a comprehensive examination in commercial litigation law, and be reviewed and approved by judges and attorneys. who opposed them in court and in the community. You can obtain a complete list of Board-certified commercial litigation attorneys by city on the Florida Bar website at http://www.flabar.org.