Legal

This Week's Tip

There are two options that an entrepreneur can use to shed the lease obligations of a failing business:
· Buy out the remaining obligation – offer the landlord a quick lump sum in exchange for a quick and orderly exit.  You may get by with losing your security deposit and a month’s rent.  In tough markets, you may have to offer more.
· Find a new tenant – With a long-term lease, your best bet may be looking for a replacement tenant.  Present the landlord with a credit worth tenant.  Even if you are not allowed to sublet, the landlord will be obligated to mitigate his losses by looking at the new company.  You may need to pick up a portion of the new tenant’s rent to close the deal.