When you purchase a Miami commercial property with tenants in place, you’re not just acquiring the physical space – you’re also inheriting the legal obligations outlined in the existing lease agreements. In most cases, leases remain fully enforceable after the property changes hands.

This means that as the new landlord, you must honor the terms of any legally binding lease unless there are specific provisions or circumstances that allow for modification or termination.

What Happens When You Inherit Tenants

When you purchase a commercial property with an existing lease agreement, you are stepping into the shoes of the previous landlord. This means you inherit all the rights and obligations outlined in the existing lease, including the rental income, maintenance responsibilities and other terms of the agreement.

The lease doesn’t automatically change just because the property has a new owner. You are legally bound by its terms until it expires, the tenant vacates the property or you are able to negotiate new terms. For this reason, it’s critical to fully understand the lease and how it aligns with your investment goals before finalizing the purchase.

Can You Modify an Existing Lease?

The ability to modify a lease depends largely on the terms of the agreement and the willingness of the tenant. Here are a few situations in which modifications may be considered:

  • If there is mutual agreement with the tenant – If both parties agree, you may be able to negotiate directly with the tenant to amend the lease to reflect new terms. Not surprisingly, tenants may be open to changes if there’s an incentive for them to do it. 
  • During lease renewal – If the current lease is set to expire soon, you will have an opportunity to negotiate new terms before offering a renewal. Tenants who want to stay may be willing to accept revised conditions, especially if market rates have changed.
  • If there are provisions that allow modifications within the lease – Some leases include modification clauses that allow the landlord to make certain changes under specific conditions. Examples include adjustments to rent based on market rates or changes to common area maintenance (CAM) fees. Before assuming you can make changes, review the lease carefully and consult a real estate attorney.
Contact Us at Sirulnik Law for Questions About Lease Agreements 

In most cases, you cannot unilaterally terminate a tenant’s lease just because you want to. There may be scenarios in which modification or termination may be possible, but it’s highly advisable to do so under the guidance of a Miami real estate lawyer. If you attempt to modify or terminate a lease without legal grounds, you could face breach of contract lawsuits from tenants, financial penalties, legal fees or other issues.

If you’re in the process of buying a commercial property and need help reviewing leases or negotiating terms, call us at Sirulnik Law to ensure you make informed decisions that align with your investment goals. We provide services from the early pre-due diligence stage through to transaction closing. To learn more about how we can help you, contact us at the Law Offices of Alex D. Sirulnik, P.A. to request a free consultation.