Shell Company
A tenant should make the necessary searches to determine whether the landlord is financially viable or merely a “shell” company.
If it is a “shell” company, without any assets, this will inevitably leave a problem to the tenant if the landlord subsequently defaults under the lease, or under any mortgage on the property.
The landlord should make the necessary searches to determine whether the tenant is financially viable or merely a “shell” company.
If it is a “shell” company, without any assets, this will inevitably leave a problem to the landlord if the tenant subsequently defaults under the lease.
Always ask
A tenant should always ask what the annual taxes and operating costs are (in addition, of course, to asking what the basic rent, and, if applicable, what the percentage rent is).
Why?
Because the tenant wants to determine their annual budget using relevant figures.
Harvey Haber’s Leasing Tips