About Commercial Lease Agreements

A commercial lease agreement is a contract between the tenant and landlord. The document allows the tenant to use a property for a given amount of time. You can use a commercial lease agreement in three main occasions:

• If your commercial property will be leased to a new tenant

• If your commercial property will be converted to a rental property

• You want o lease your commercial rental property from a landlord who does not have a lease form.

For a document to be recognized as a commercial lease agreement form it must have the following information: property address, names of the tenant(s) and the property owner (s), start and termination dates, amount charged for the property, interval of payment, provision of lease renewal, and the signatures of the involved parties.

You need to note a number of things when drafting a commercial lease agreement form. One thing that you need to note is whether the leased property is on net lease or gross lease.

Net lease is where the tenant needs to pay a share of real estate tax along with the rental while gross lease is where the tenant only needs to pay the rentals of the house.

To avoid any misunderstanding in the future, you should ensure that this information is encapsulated in the agreement form.

You also need to note the permitted uses of the leased property. The uses depend on the design of the property. For example, you can’t lease your premises to a restaurateur if your property does not have a fully functioning kitchen.

Insurance responsibilities are also important things that you should note. You should sit down with your tenant and decide who will be responsible for the insurance.

In addition to insurance responsibilities, you also need to spell out who will be responsible for the maintenance of the property. In most cases the landlord is the one who is usually responsible for the maintenance; however, if the tenant has a different understanding, you can pass the responsibility to him/her.

Any special provisions should also be included in the agreement. For example, you should write down the materials that should be stored or used on the premises. You should also state how you will solve your problems when they come up.

You don’t have to worry if you are having problems drafting the agreement form. This is because there are many individuals and organizations that can draft the form for you for just a small fee.

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