What’s the most ridiculous lease clause you’ve encountered?

What’s the most ridiculous lease clause you’ve encountered?

Over the next few weeks, let’s exchange some lease clauses that drive us crazy. During my 25 years in corporate real estate I had to live with some mighty repugnant clauses, prohibiting such things as sub-leasing a portion of space, occupying the building on weekends or hiring a satisfactory janitorial service. Hence I always tell people that I have special sonar for ridiculous clauses. I prepare a check list for questions to get in writing in the lease agreement to avoid arguments and frustration later. Some clauses are so inane, you just laugh. Then line it out with a thick Sharpie pen.  Here’s an example:

“Legal fees paid by tenant.”

Well duh. If the landlord plans to do something crazy like send around an assessment for a flying saucer landing pad on the roof, why should the tenant have to pay legal fees to take themselves to court? If the landlord insists on this clause, you may start questioning how litigious this particular landlord is in his business dealings. Get on the same playing field that is the only way to play the rental game.

Please share your best examples in this blog, we welcome your contributions and will aim to publish the best examples.

About the Author

Lynn Drake’s status is well known in the industry: She’s the commercial realtor focused on maintaining “true north” for her corporate clients. It’s a reputation built on 35 years of commercial real estate experience. Lynn became a commercial realtor in 2001 after 15 years in corporate real estate. Thus far in her career, Lynn has successfully completed over 1,500 real estate transactions ranging from small business tenant leases to the sale and purchase of industrial complexes.