Negotiating a Lease Parachute
Provided by: Jennifer Kirschenbaum, Esq.
June 5, 2018
My lease is up for renewal but I'm not sure how much longer I care to practice. Any thoughts on how I can protect myself? Should I just put the lease in my practice name?
Appreciate your advice,
Protecting yourself personally but putting an entity on as tenant is one way to protect against lease exposure. However, your practice and its ARs would potentially be at risk. The best route I can see is asking your landlord for a shorter lease term, or even a right to terminate. Most real property leases do not have a right to terminate, but that is not to say some don't or they shouldn't. Where you have a longstanding relationship with your landlord it is certainly reasonable to request upon proper advanced notice you be released from liability of a lease. You might have to offer a termination penalty - to buy your way out - but the exposure from a negotiated termination fee will likely be far less severe than having to pay the remainder of a lease term (in most cases).
Need help? Let us know.
Contact Jennifer at Jennifer@Kirschenbaumesq.com or at (516) 747-6700 x. 302.
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com