Do I have grounds to get out of a lease, if the landlord violated his own non-competition rule and let a competing business in the same building?

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Do I have grounds to get out of a lease, if the landlord violated his own non-competition rule and let a competing business in the same building?

I was told when I rented a space for my salon, that we could not compete with the nail salon across the courtyard from us. Then the landlord let in a tenant who does facials, waxing, and makeup, which we also do. Business is slow and I feel like he has hindered the success of my business by allowing a competing business into our building. Do I have grounds to get out of my 5 year lease?

Asked on September 8, 2011 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You need to carefully read your commercial real estate lease (assuming you have one) in that its terms control the obligations owed you by the landlord and vice versa in the absemce of conflicting state law. If your written lease contains a provision that you have exclusive use in the complex to do facials, waxing and makeup, then you are entitled to have no competitors with your business in your complex that is rented out by the same landlord.

If your written lease does not have such a provision precluding competitors in the complex that you are leasing, you need to speak with your landlord about leasing to some business that does virtually the same type of services that you do which competes directly with your business and the possibility of you ending your lease as a result of what the landlord did in renting to a competing business.

If you do not get any satisfactory results, you should consult with a landlord tenant attorney to review the options you have under your written lease.

Good luck.


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