Wednesday, March 28, 2007

From Lease Audits: The Essential Guide

Whenever a landlord or tenant discovers an error from a lease audit, the typical response will be to present the findings to the other side in an effort to obtain a settlement.

"If the tenant has confronted the landlord with the claim, and the landlord and tenant have been unable to resolve the matter through negotiation, how might the tenant proceed?

Tenant self-help
These approaches tend to be quite risky and often quite unwise, but nonetheless the sort of things which an agitated, concerned and self-righteous tenant might consider.
* Withhold rent
* Move out of the premises
* Change tactics, negotiate a lease extension with release of claim by a reason of error as a carrot to landlord to sweeten the terms
* Develop tenant group to make joint claim
* Bad-mouth the landlord
* Decide to currently do nothing


Lawsuits
* Claim for breach of lease
* Claim for fraud
* Claim under RICO (Racketeer Influenced and Corrupt Organizations
Act) or state deceptive practices act
* Claim for negligent misrepresentation
* Claim for declaratory judgment
* Claim for reformation
* Claim for recission


Alternative Dispute Resolution
* Mediation
* Arbitration


The particular size and nature of the error will have an obvious role in framing tenant's choice. The state of the rental market in the locale where the leased premises are located at the time will often be important. The significance of the error in the overall structure of tenant's affairs may substantially control the decisions which the tenant makes. Tenant's analysis of the landlord's likely reaction to tenant's approach will also affect tenant's actions." for more information see; www.houstonrealtyadvisors.net