Clauses that should be included in commercial lease agreements
1/11/2016 | Real Estate Blog
While some people run their small businesses out of their home, in most situations, at some point or another it becomes necessary to find another space to work out of. In some cases, once found, that location will be purchased. Other times however, a business will opt to lease a space. In these cases a commercial lease agreement is necessary.
The commercial lease agreement should be tailored to reflect the specific needs of the business entering into it. That said certain terms should always be included. We will discuss a few of those terms in this post.
The first is how much the business will pay for the use of the property. This should also address which party will pay for related costs such as repairs, insurance, property taxes and utilities. Along these same lines, the length of the lease and any rent increases that may take place during the course of the lease should be addressed as well.
A description of the property needs to be included in the lease. In addition, because many spaces will need to be modified to suit the needs of the business, the lease should lay out the types of improvements that can be made to the property. Which party will pay for the improvements should also be discussed. So too should what the tenant needs to do to the space upon vacating it.
It is also important that the right to assign the lease or sublet the location is considered. Likewise, the terms and amount f the security deposit should also be reflected in the commercial lease.
To make sure the necessary terms are incorporated into the commercial lease it is advisable to work with a lawyer.