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Considerations for commercial leases

On Behalf of | Oct 13, 2023 | Real Estate Law |

If you want to start a business, you may decide to lease a commercial property where you can run it. There are several important items to include in a commercial lease.

Commercial lease

A commercial lease is an agreement between a landlord and a tenant to rent the commercial property. It should include the names and contact information for the landlord and tenant, a description of the property including whether the tenant is allowed to access any common spaces, and the start and end dates of the lease.

It should also list the rent amount, when it is due each month, and any late fees that will be assessed, as well as where the tenant should make the payment. The landlord may require the tenant to pay a security deposit. If so, the lease should list the security deposit amount, how it will be returned at the end of the lease and conditions that would entitle the landlord to keep the deposit.

Property maintenance and insurance

The lease should specify who is responsible for maintenance and repairs to the commercial property. Because commercial properties are often larger than residential properties, this could be a significant expense.

Also, the tenant and landlord should clearly define who will pay for property insurance, who will make a claim if there is property damage, and the amount of coverage.

Renewal and termination

In the event the landlord and tenant want to renew the lease, it should include notice periods for renewal and whether the rent will change. Finally, it should explain how either party can terminate the lease.