Am I wrong? Landlord getting rent from two businesses?
I’m leasing a new place that was previously a bank. I was told that the bank has a corporate guarantee, which means the landlord will be getting lease from me and the bank for the next two years. Is that even possible to get rent from two people at the same time?
[{"id": "j1hr5es", "text": "That\u2019s really between the bank and the landlord.\nBut in most cases there is a \u201cduty to mitigate damages\u201d  so the bank will likely not have to pay once you start paying.", "replies": [{"id": "j1hu4qc", "text": "It is possible.  I almost pulled it off with two financial institutions until the original one found out their competition was moving in.  With that said this is the first I'm hearing of duty to mitigate damages, so maybe it wouldn't have worked after all.", "replies": [], "depth": 2}], "depth": 1}, {"id": "j1hvv9u", "text": "Perhaps the bank will pay the difference between what you pay and the bank had been formally paying so that the owner is compensated for the amount owed. \n\nBank has long term lease for $5000 per month for 48 months. Moved out with 24 months remaking. You take it for $4000 a month bank send him a $1000 until their lease is up. (Just spit balling)", "replies": [{"id": "j1kk4uz", "text": "This is very common. Bank could also be on the hook for the commission landlord had to pay to a broker to find you, and possibly TI or other transition costs. Also totally a guess but common in corporate guaranteed leases.", "replies": [], "depth": 2}], "depth": 1}, {"id": "j1i1hvv", "text": "Yes, it is common if the prior Tenant did not fulfill its legal obligations.  Regardless if the space has been leased again, prior Tenant must fulfill its lease.  Credit Tenants (such as banks) guarantee X years on a lease.  If they terminate the lease, they are still liable for the guaranteed years unless otherwise stipulated.\n\nIn this scenario most Tenants pay the due amount in one sum.  They do not pay monthly until the term ends.  I've had several credit Tenants in this situation.", "replies": [], "depth": 1}, {"id": "j1i8tzh", "text": "You contract it, and owe the terms of the lease. If you bail one year into a five year lease you owe the next four years too, and it has nothing to do with the next tenant after you. That\u2019s the point of a guarantee. \n\nConsider the two years the landlord is getting may be considerably less than what\u2019s owed by the bank. Also consider there could have been litigation and other expensive factors to get to this point. It ultimately doesn\u2019t have any effect on you or your contract to lease.  In a perfect world the landlord was able to reduce your rent slightly as a result of this so you might already be getting the benefits you wish you were.", "replies": [{"id": "j1jq4y3", "text": "Most cases I see, the tenant who has vacated retains rights to the space as they continue to pay.  Tenant that vacated either secure a sub tenant, or structural a lease buyout/termination. \n\nA landlord typically cannot have two parties under a lease for the same space. (I\u2019m in Illinois - real estate law varies state to state).", "replies": [{"id": "j1jw39u", "text": "Depends on how the commercial lease was terminated. They aren\u2019t actually getting two rents on a double leased space, it just feels like it to someone that currently has to pay. It\u2019s a settlement payment. There\u2019s no access or rights to the space at this point.", "replies": [], "depth": 3}, {"id": "j1lv99q", "text": "Agree- 2 tenants couldn't have the same rights to the space at the same time, unless it's a 3-party shared arrangement (IE Timeshare type space) which OP would have executed along with a bank. \n\nMore than likely, a buyout occurs- LL negotiates having the bank pay now (possibly reduced sum) to get it off their books and remove the liability, while LL finalizes the new lease with OP.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1iak2b", "text": "Are you subleasing or is it a lease?", "replies": [], "depth": 1}, {"id": "j1iwqnc", "text": "Why do you care? What happens between the landlord and the previous tenant has nothing to do with you.", "replies": [], "depth": 1}, {"id": "j1ji7io", "text": "I wouldn't think of it as an additional lease payment. The bank has an unfulfilled contract obligation and an amount due. You have a leasehold in exchange for rent.", "replies": [], "depth": 1}, {"id": "j1jpo3p", "text": "In most cases I see, the landlord will secure a lease buyout from the tenant that vacated before executing a lease with a new tenant.\n\nI have a similar situation now where we are looking to release a medical space still under a lease with a regional healthcare tenant. \n\n They have 30 months of term remaining and they will buyout their lease at 65% of the outstanding base rent due.", "replies": [], "depth": 1}, {"id": "j1jvebe", "text": "You\u2019re wrong.", "replies": [], "depth": 1}, {"id": "j1mb5h3", "text": "That\u2019s not what is happening. \n\nYou are leasing a space that someone else said they would lease for 2 more years. They went to the landlord and said, I know we are obligated to pay you for two more years what do we have to do to get out of this arrangement \n\nThe landlord said to the bank, I will allow you to vacate   If/when we can fill the space, AND if you either keep your current Guarantee in place or we put a guarantee in place which basically says that if the new tenant defaults on rent payments, The people who were originally responsible for paying rent at that location at that time, the bank, is responsible for paying rent.\n\nThe the landlord has a guarantee that he will be paid rent by the person who guaranteed that they would pay rent and then change the terms in the event that something goes wrong. \n\nNow if you don\u2019t pay rent, I believe the bank would then be the one to pursue the money from you versus the landlord until their guarantee expires.", "replies": [{"id": "j1md23t", "text": "This is also known as an assignment of lease. Meaning they assigned the former lease to you but kept the old guarantors in place", "replies": [], "depth": 2}], "depth": 1}, {"id": "j1wdhv9", "text": "Common for exiting tenant (lease holder) to include surrender (rent, rates, insurance, service charge, etc) agreement in with the dilapidations negotiations. Landlord likely received a lump sum of remaining liability.", "replies": [], "depth": 1}]