You’ve gone through the process of securing the financing, acquiring your commercial property, and completing renovations. You’re now ready to begin leasing to potential tenants.
Before you go any further, it’s important to have a strong lease agreement. Without it, you can lose your hard work and money in court expenses. Therefore, here is what every commercial lease agreement should include:
1. Name of parties
A lease contract is a legally binding document that outlines the rights and responsibilities of the parties involved, so it is essential to include both the landlord and tenant names.
2. Premises
The business’s physical location should be clearly defined in the lease agreement, including the exact square footage of the space being leased, as well as any common areas that may be shared with other tenants.
3. Terms
The lease agreement terms should outline the lease duration, rent and termination clauses.
4. Intended use
A commercial lease agreement should also include how the space will be used. Property owners typically want to restrict certain activities that could violate zoning regulations or damage the property.
5. Who’s responsible for utilities and maintenance
The contract should state who is responsible for utilities, whether it’s part of the rent payment or an added fee. It’s also important to state who will be responsible for the building’s interior and exterior maintenance. What about issues such as a leaking roof or repairing the HVAC system?
There are several other elements to include in a commercial lease agreement based on the particular property. Since a commercial lease agreement is a legal document, you shouldn’t try to create one on your own. You will want to work with someone who will help you protect your investment.