COMMERCIAL LEASE TEMPLATE
Whether you are going into business and need a property to rent, or want to rent a property to tenants, you are going to have to enter a commercial lease agreement.
A Commercial lease agreement is necessary whenever you intend to rent for commercial use, or when you want to fill your commercial space with paying tenants. No matter which side of the equation you are on, there are qualities to commercial property rental agreements you will need to know before you enter one. Even if you are simply just looking for a lease of some office space or buying a property to lease it as commercial property, be ready before you take that step. Here is what you will need to know:
- COMMERCIAL PROPERTY LEASE - WHAT IS IT?
Be it for a car, a house or any other lease, a commercial property leases allow property owners and tenants to enter an agreement where the tenant occupies the space, and pays the landlord for that privilege. The one difference is that a commercial business lease, as it states, is for a business purposes. It doesn't matter if it's a Doctor's Surgery, an industrial space, or office space, if the intent is for commercial purposes, then you will have to enter a Commercial Property Lease.
- COMMERCIAL LEASE - WHEN CAN I USE IT?
If you aim to rent a property for a business or commercial venture, or your intent is to rent a property out for commercial use, you will need to enter into a Commercial Lease.This is because commercial endeavours usually see much higher traffic (customers, deliveries, employees.) then a residential premises. These leases are to regulate the property and the special conditions that arise in commercial situations. Commercial leases are distinctly different from residential leases, and it is important to be aware of this.
- WHAT MAKES A RESIDENTIAL LEASE DIFFERENT FROM A COMMERCIAL LEASE?
Commercial properties are intended to be used as business spaces. All of them place special demands on the owner and the tenant, no matter if it’s a dentist's surgery or a factory. Commercial leases typically have special clauses stating what activities can and can't go on, who is permitted on the site, safety and security concerns, privacy rights and landlord access rights, as well as other business-specific clauses. Even office space leases will typically have many such clauses and conditions, specific to the situation.
- WHAT NEEDS TO BE STATED IN THE LEASE?
There is a number of things that need to go into any lease for a commercial property. Since it will hold a business, Commercial Leases often last for a long period of time. They also need to explicitly state the terms of liability, renewal, assignment rights and other issues. Commercial leases have individual clauses that are designed to meet the needs of the business(es) that plan to operate on the premises.
Business may be complicated. If you want to rent office space or store-front space, you need to be sure your lease gives you enough latitude so that you can run your business the way you need to, but also enough security to make sure you can’t be kicked out at will. If you are a landowner, you want to make sure you protect your asset and not compromise its value by renting to a party that will cause issues. Either way, knowing how to make a complete, sound and legally binding Commercial Property Lease is essential.