The collective restaurant that my wife recently became a co-owner of has been operating in the same location for nearly 40 years. Throughout that time, they’ve been pretty much paying the same rent with little or no change. The owner of the property, however, has refused to ever enter into a lease with the restaurant’s ownership. Recently, as the building ages, the issue of which party is responsible for repair and upkeep has come into question. As a former paralegal, I’ve trolled through Virginia’s Landlord Tenant Act but am unconvinced that they are covered by any portion of it as they 1) are a commercial entity and the act primarily covers residential dwellings and 2) have no lease to protect them in the first place.
So my question is if anyone is aware of any rights/protections granted to commercial tenants in the absence of a lease. Furthermore, if, at any point, mold develops or the roof needs repairs, is the landlord responsible if there isn’t a lease in place binding the landlord to repairs and upkeep?
Thanks in advance, I really just need a point in the right direction so I can pass the info on to the collective. Real estate law was never my expertise.
kemperk said:
May 04, 09 at 3:54 am5. Repairs.
During the Lease term, Tenant shall make, at Tenant’s expense, all necessary repairs to the Leased Premises. Repairs shall include such items as routine repairs of floors, walls, ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy, except for major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease.
this is from a lease form–I find it disconcerting
i suggest getting a lease-purchase agreement
Expert_Realtor said:
May 04, 09 at 8:21 amYou won’t find what you need in the Landlord Tenant Act because that applies to RESIDENTIAL leases…it doens’t apply to commercial.
Commercial leases and residential leases work drastically different from each other…they are not even close…that is why it is even more important for there to be an agreement in writing for every reason you wrote in your question.
I’m a residential specialist, not a commercial specialist…so it would be best to spend money on a consultation with a real estate attorney that specializes in small business leases.