In the Spotlight: A Tenant's Right to Offset

A commercial tenant's right to remedy a default by the landlord by performing the required work itself, and then offsetting the costs of such work against future rental payments, is likely the most immediate and effective remedy a tenant could ever have. But a tenant needs to review the lease agreement closely and know the local applicable law before ever deciding to take such an aggressive measure. Most leases (and the laws of most states, if the lease is silent) essentially prohibit the right of offset, so the sophisticated and creditworthy tenant will need to negotiate for such a right before the lease is finalized.