Jul
12Restaurant Lease Agreements Are Between Principals
Filed Under (Construction of a New Restaurant, Negotiating Restaurant Leases, Planning a Restaurant, Uncategorized) by Larry on 12-07-2009
Tagged Under : agreements, lease, owner, property
In the previous post, we outlined the problems we are having enforcing a provision in our lease concerning the adequacy of the HVAC system. Temperatures are uncomfortable in dining areas and the lease warrants that the A/C is sufficient to operate a restaurant.
In many cases, large properties are managed by management companies who represent the actual owners of the property. While the management company handles routine maintenance and operation of the property, they do not sign or obligate the actual owner. Your lease is always between you and the owner to be enforceable.
The management company has an obligation to operate the property at the lowest possible cost to the owner. Most of the time they get a percentage of the rents and other fees to maintain the facility. However management companies don’t always act in the best long term interest of the owner. For instance, if they are notoriously poor managers with sloppy properties and inconsistent maintenance, tenants may move or prospective tenants may shy away from the property.
Restaurants should always copy correspondence directly to the owners when involved with problems the management company seems to ignore or refuse to handle. Many owners are totally unaware of what transpires between tenants and the property managers. If owners continue to have issues coming from tenants, you may find service improve through regular contact. Keep in mind, once you go around the management company, your relationship will be adversarial in the future. Sometimes you have to take action when it affects the comfort and expectations of your guests.


