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What is important to include in a commercial lease to assist in bad debt recovery in Massachusetts

The commercial lease may require careful assessment of the lessee when businesses engage in the multi-year lease of building or equipment. When a business goes through a rough time, there is a likely chance that a lessee would delay their rental or lease payments, or refuse to pay for some time. Landlords and commercial lease operators should take possible cautions when preparing their agreements to help ensure in case of bad debt, there are possible recovery options in place. Consult a competent collection attorney before you lease your property and afterwards when your tenants and lessees start to skip their payments and morph into deadbeats.

Unlike a residential lease where a security deposit is provided for when a lease is signed, commercial security deposits are not governed by any legal stature. In a residential lease, the security deposit may be one month, or a full year rent acting as a security interest when a default happens, while in a commercial lease both the lessee and the lessor need to negotiate security deposit terms and relevant payment and acceptance processes. The skilled and competent attorneys at Law Offices of Alan M. Cohen LLC can help you negotiate the amount of security deposit and your lease terms so that your interests are better protected.

A security deposit can broadly be used when a tenant or lessee damages the property, fails to pay rent or utilities and uses premises or equipment for business use other than stated in the agreement. Because the lessee may push back on any other clause apart from the material breach, you need skilled negotiators and attorneys to make the lessee honor the claims on your behalf.

An experienced collection attorney may also help you seek a Uniform Commercial Code (UCC) lien as a landlord, against the personal properties and assets of the lessee. A UCC lien is similar to a mortgagee but gives access to significant commercial assets that can be used to offset any bad debts that may have risen due to nonpayment of rents and damages. The lien can be placed until the bad debts are collected.

The need to hire a competent collections attorney may rise at different phases of a commercial lease tenure. When you sue your tenant or lessee, a collections attorney can help you get paid. There are certain clauses that should be in a landlord’s commercial lease such as attorney’s fees, interest, venue, subordination, waiver and acceleration clauses but to name a few.

Collection attorneys at the Law Offices of Alan M. Cohen LLC are well aware of the difficulties that commercial lessors can encounter. Their over thirty-five years of experience in helping negotiate agreements and recover bad debts when a deadbeat arises is why they are recognized as top-rated and award-winning collections attorneys in Massachusetts. They relentlessly and aggressively pursue your case to try to collect unpaid rents and damages in a legal and ethical manner. The Law Offices of Attorney Alan M. Cohen LLC have represented countless businesses in lawful and aggressive commercial rent collections in Massachusetts for decades. For more information about exactly how we can help in your attempts to recover bad debts, call (508) 620-6900 or send us an email to info@collections-law.com.

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