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Five Secrets to Drafting an Effective Default Lease

By Adam Leitman Bailey and John M. Desiderio
June 02, 2017

An effective commercial lease will dictate the future relationship between landlord and tenant. The more clauses forcing the commercial tenant to comply with its obligations, the better chance the landlord will have, not only to achieve a successful relationship, but also to ensure that the rent is paid and the tenant behaves. Below are some of the lesser-known, creative clauses used to ensure either payment of rent and compliance, or a swift eviction of the commercial tenant. They are what we call “tools of the effective default clause.”

Additional Rent

It is important that all monies the tenant is required to pay during the term of the lease, other than the rent itself, be expressly designated as “additional rent.” This can include late charges, taxes, various building expenses, attorney fees, letters of credit, insurance, and any other items specific to the particular premises involved that the landlord requires the tenant to pay. If such items are designated as “additional rent” in the lease, the landlord may initiate a summary proceeding to recover possession of the premises for the tenant's failure to make a required payment of such, whether or not the tenant has paid the requisite monthly base rent. See Melick v. Ken's Service Station, Inc., 44 Misc.3d 143(A), 2014 WL 4251023 (N.Y. Sup App. Term) (2d Dept.)

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