Commercial Lease Agreement is necessary when any Landlord wishes to rent commercial real estate (such as a store, office, warehouse etc.), to a potential Tenant. A written lease agreement is designed to document the terms and condition of the lease agreement between the Landlord and Tenant, and will help avoid possible misunderstandings and problems in the future. If a dispute or misunderstanding does take place dealing with issues such as rent, lease term, repair policies, etc., a Commercial Lease Agreement is useful for clarification or evidence. It is important to note that a business lease is different than a residential lease.
If you are entering into a commercial lease agreement, a properly drafted document will provide you peace mind because it is legally accurate, current, simple to use, and especially created for this type of transaction. The following are, among others, important provisions in any commercial lease agreement:
- Premises and Lease Term: States the location and description of the premises, and lenght of lease;
- Rent Amount and Fees: Describes rent payment, when and how rental payments are made, and penalties for late charges or insufficient funds;
- Taxes: Sets forth the Landlord’s and Tenant’s responsibilities during the lease term, with respect to tax payments for general real estate taxes, special assessments, personal property, fixtures and equipments;
- Security Deposit: Indicates the security deposit amount, and the conditions for the return of the deposit;
- Use: Describes the permitted and prohibited use of the property, conditions for noise, signage,and building rules and regulations;
- Construction, Damage, and Obligations for Repairs: Sets forth the obligations and procedures for any alterations,improvements, maintenance and repair of the premises;
- Security, Insurance, and Indemnification: States the parties responsibilities for the security of the tenant or the premises, who shall maintain Insurance and has liability in case of loss, claim or injury;
- Possession and Inspection: Describes when a Tenant may take possession of the property and Landlord’s right to inspection; and
- Default: Explains the events of default and both physical and financial remedies.
The attorneys at The Heckele Law Firm, PLLC assist both commercial landlords and tenants negotiate and prepare commercial lease agreements. For assistance, contact us at (520) 495-0869.