4 Important Agreements Every Commercial Lease Should Outline

Leasing properties for commercial purposes have become a popular move today due to irresistible desire to do business amid limited spaces. Many people have discovered that they must not own a commercial building to operate businesses in it since it is cheaper to lease. However, this doesn’t work properly without a clear set of rules that sketch out the contract that landlords and tenants should have. Before landlords lease the property to tenants, they should have a legal document that outlines the leasing process, business details and other agreements that the tenant should abide by. Some of the details the landlords should include in the commercial lease template are:

commercial lease template

Tenants’ Names

As a landlord, you should not lease your property to tenants who decline to give their full names. You should not accept a tenant who just gives writes one name in the lease since you may not justifiably follow them up in case they break the lease agreement. Once the tenants give their full names in the commercial lease template, they legally commit themselves to all the contract agreements therein. In case, they break any agreement you can hold them responsible in the corridors of justice. With all the names of the tenant in this lease form, you can terminate the tenancy in case that particular tenant violates the agreement.

Tenancy Terms

The lease agreement form should stipulate whether the tenancy is a term lease that is fixed or a rental agreement. Most rental agreements are monthly based and the tenant can renew the tenancy if the landlord has not decided to terminate it. Fixed-term leases have annual cycles and this favors people who intend to occupy the commercial property for lease for a long time. The tenancy terms in the agreement document give the landlords the power to choose the duration the tenant should stay or do business in their property and adjust flexibility.

Rent

The commercial property lease should specify how much the tenant should pay, by what time and the payment methods that the leasing party acknowledges. Some landlords prefer tenants to make payments through emails and others accept cash. You may also find landlords who ask tenants to deposit money in the bank and keep bank statements to prove the payment they make. Still on the rent agreement, tenants should find out if there are penalties if they don’t pay by the due date. If the tenant chooses to pay through personal check, they should find out the fines that accompany bounced checks.

Occupancy Limits

If the tenant opts to live in the same property they are operating a business, they should find out if there are rules limiting this. If the tenant only operates a business from the building and spends somewhere else, they should know if the lease allows them to do more than one business there. In some leases, the tenants have no right to decide the business they should do there or even change the business products or services depending on seasons. In fact, some landlords insist that leasing tenants should only operate the business they fill in the agreement form or the commercial lease template.

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