The commercial lease template functions as a proof of a contract between the landlord and the tenant for the rent of a business property. Most of the businesses require an office space or a store, and a commercial lease contract permits the land owner and the tenant to protect themselves if they are not on the same level. Any person is liable to use commercial lease contract if:
– Someone is the owner of the commercial property which he wants to lease to a new tenant.
– Someone is the owner of the commercial property that can be changed to a rental property.
– Someone wants to lease the rental property from a landowner who doesn’t possess a lease form.
These templates form a significant document that details the terms and conditions using which any commercial space is leased. These are widely used by commercial landowners or tenants to protect their commercial interests.
Tips to consider while you take up a commercial lease:
Starting and developing a business is in itself a daunting task, but the availability of commercial lease template with a commercial property lease has greatly worked in the favour of business aspirants.
If the business is new or an old one is in need of more space, the availability of various choices and favourable market conditions for the tenants proves to be a helpful prospect of budding businesspersons and small entrepreneurs. However, negotiating for a commercial lease is in itself a very complex process that demands patience and research.
Setting up the suitable term:
The term and rent that you are liable to pay should be your foremost concern. One should always avoid over-committing when giving some flexibility in the long term. Typically, experts recommend that small businessmen should negotiate a lease between one to two years with an option to renew if, needed. Rent increase over a stipulated period of time should be looked after initially so that you are not struck with a rent increase all of a sudden without prior warning.
Considering the expenses:
Like residential lease, commercial real estate owners often demand extra payments for the common area maintenance, the amount for shared facilities, utilities, etc. These charges should be the basic responsibility of the tenant and hence, you must take a close look at how your they are measured so that you can avoid incurring any of the hidden costs.
Maintenance and repair:
Some of the commercial lease owners stipulate that the renter is responsible for all sorts of maintenance, upkeep and repairs. Even others clearly specify that the tenant is responsible for services like air conditioners, plumbing, electric maintenance, etc. So you should go through your commercial lease template thoroughly in order to know how much you are liable to pay for repair and maintenance.
An experienced attorney which specializes in commercial real estate can draft a commercial lease form to build clauses to protect your business, which may include:
Sub-lease: This helps to build some flexibility that enables you to change your business strategy and sublet your area to another business.
Exclusivity clause: This hinders the landowners to lease out any other area of the development to any direct rival of yours.
Co-tenancy: If the building has any anchor tenant and if the tenant closes, then a co tenancy agreement will protect you from any kind of potential loss by allowing you to break the lease if the land owner fails to remove the anchor tenant within the mentioned time period.
A reputed enterprise can help you in this respect with their free commercial lease agreements, which are affordable. In these firms, top quality legal papers covering all major agreements are drafted by responsible lawyers in plain language so that you can comprehend every word and be assured to make the most out of your commercial lease.