Why Commercial Lease Agreement Necessary for Landlords


Anytime you are renting out a commercial building to a tenant, you’re going to need to have them input information and add a signature to a commercial lease agreement prior to them actually having access or moving into the building. In a lot of ways, a form for commercial properties is similar to any other type of lease or Residential Sublease Agreement. The reason is because they define the rights as well as responsibilities of the landlord as well as the tenant. This form is considered a legally binding contract and therefore it needs to state all of the necessary information such as name of property, name of tenant, and even the length of the lease. In order to have clarity amongst the property owner and the tenant all special terms and requirements should be clearly stated so that there is no confusion in the future.

A commercial lease agreement is a contract between the tenant and landlord. The document allows the tenant to use a property for a given amount of time. You can use a commercial lease agreement in three main occasions:

• If your commercial property will be leased to a new tenant
• If your commercial property will be converted to a rental property
• You want o lease your commercial rental property from a landlord who does not have a lease form.




With most residential leases, they are only referring to the actual home. In a commercial lease agreement it will cover a wide array of properties that can include offices, stores, factories, and other commercial properties. Often cases the lease will also include additions such as the parking lot and any other extras that might come with the building. By adding this information they are able to be sure that everyone is fully aware of what is being leased and what is to be expected of them until the end of the leasing period.

Nowadays there have been many cases where the leased party through some legal technicalities have been able to get hold of the personal space and the individual who owned that place was doomed. Hence, one needs to have a strong and tactful commercial lease agreement in order to keep his/her property intact. Let us have a closer look at some of those points:-


⇒It is of paramount importance to note the exact space that has been meted out to the tenants. In many a cases, it has been seen that there is a lot of difference between the actual length of the space and the given one.


⇒Secondly, it is important to write the number of tenants that are supposed to live in the lease agreement template word property. Many a times we have seen that on the pretext of leasing a property the tenants call out ‘n’ number of people in the leased out apartments and then reason that since they have paid the full bounty, they can call as many people as they want to and more number of people indicate only one thing and that is mismanagement of the leased property. So the actual number of tenants must be asked for in the lease agreement and it should be noted that any increase in the number is not entitled before the wish of the proprietor.


⇒It should also be noted that whether the leased out property is on a gross lease or on a net lease. There are many cases where due to this minor complication court cases are going on. Hence, it should be made clear on the lease agreement whether the tenant only has to pay the rentals of the house, which is called a gross lease or whether the tenant needs to pay a share of real estate tax and other taxes along with the rental. This is called a triple net release. So a commercial lease agreement must encapsulate these points.


⇒Last but not the least, other activities that might look minor at first but can cause havoc must also be dealt with in the lease agreement. Whether the tenant can keep his/her pets or not, prohibition in the use of drugs and in some case even loud music is not tolerated. So all these activities must be accounted in the commercial lease agreement.


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