Jul 28, 2014
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Stop Wasting Your Business’ Money: Attorney Jack Garson Provides Tips on Finding the “Escape Hatch” in Your Lease

Stop Wasting Your Business’ Money: Attorney Jack Garson Provides Tips on Finding the “Escape Hatch” in Your Lease

Most people view business leases as something they can never get out of. Thankfully, with a little ingenuity and a good attorney, there are ways to plot your escape from an otherwise binding property lease. In his latest Huffington Post article, “How to Get Out of a Bad Lease,” attorney Jack Garson provides these lease extraction strategies if you find yourself in a bad situation:

·      Find a technicality.  You’d be surprised how many landlords cue up a seemingly solid lease but then leave out a critical piece of information. This is one time that reading the fine print really can work in your favor.

·      If something smells rotten, it probably is.  If you are subjected to unacceptable working conditions – unreasonably loud construction nearby, water leaking into your place of business, erratic heating and cooling systems that result in your employees wearing their winter coats inside the office – simply take out your iPhone and record what’s going on.  Evidence of unacceptable conditions, when coupled with solid case law, can be just the right combination for terminating your lease.

·      Cut your losses.  Feel like you’ve got nothing left to lose?  Then leave. Garson sometimes advises clients to shut down their current business and form a new business elsewhere.  It’s not a perfect solution, but it’s an option when all else fails.

Bankruptcy, of course, provides a well-known escape hatch. Generally, a tenant can terminate a lease in bankruptcy and limit its liability to one year's rent - sometimes less -but it’s an expensive and intrusive option. The tenant spends a small fortune and needs approval for most business decisions, paralyzing operations and putting the company in a death spiral.

With advanced planning and skillful legal advice, you can dramatically enhance your ability to build escape hatches into your leases and engineer a pain free exit, if it comes to that.  There is always a way out of a lease, Garson suggests, but you have to know where to look for it.

Read Jack Garson’s article, “How to Get Out of a Bad Lease”  here.  For more information about Jack Garson visit  www.garsonlaw.com.

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