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Also know as rent acceleration clauses, many commercial leases allow a landlord to accelerate the payment of rents upon a tenant’s default. The problem is that, like most provisions in leases, not all lease acceleration clauses are created equal. Furthermore, lease acceleration clauses are often highly regulated or limited, depending upon the state that the premises are located. Some states specifically, by statute allow for a landlord to accelerate rents upon the tenant’s default and others may simply leave it up to the parties to agree or not, to a rent acceleration clause.
Our featured guest is a noted attorney, John G. Kelly, a Partner with the firm of Bean Kinney & Korman, PC, with offices in Virginia, Maryland and Washington, DC. John has taken the time and effort to analyze some of the most significant cases relating to lease acceleration clauses in prominent states, including:
As part of the discussion, we will also discuss strategies that both the landlord and tenant can employ when drafting the lease acceleration clause.
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It's good to talk.