Important Details About Commercial Lease Agreements
When you need to create and execute a commercial lease agreement, you want to be sure it's done right. A secure agreement matters, and you need it for peace of mind. You can cover a lot of bases with a commercial lease agreement template, but you also need to fill in a few gaps.Download Template
Here's what to consider, and how to make sure you have a quality commercial lease agreement you can feel good about.
Below We’ll Cover:
You don't have to worry about your commercial lease agreement template, and filling out the details, when you know you've addressed all the important aspects of it.
- Important Clauses
- Best Practices
- Tips for a Secure Agreement
- Advice on Lease Agreements
- Key Considerations
- Related Sources
Important Clauses in Commercial Lease Agreements
There are five specific clauses in commercial lease agreements that are very important. These are:
Sublease Clause — A sublease clause allows the tenant to basically have a tenant of their own. They can rent out all or part of the space they rented from you, to someone else.
Rent Escalation Clause — This addresses when and how the rent will be raised. It could be a fixed amount at a set time, or there may be other parameters, such as taxes or insurance that increase.
Improvements and Alterations Clause — A clause like this explains any improvements you'll be making to the space before your tenant moves in, so everyone is on the same page.
Use and Exclusive Use Clauses — You want to make sure your tenant understands how they can use the space, and how they can't. This clause spells that out for everyone involved.
- Renewal Clause — How your tenant needs to renew their lease is the subject of this clause. It matters, because you want to be sure they know when and how to notify you.
By making sure all these clauses are accurate for the lease you're creating, you can be confident that your commercial lease is secure and your property is protected. The other party can then sign the agreement, and the lease will benefit both of you.
Commercial Lease Agreement Best Practices
When you use a commercial lease agreement template for your state, most of the legalities and concerns will be taken care of for you. All the "boilerplate" language will be included, so you don't have to worry about any of that. But you still want to make sure you're filling everything out that's your responsibility. In short:
- Be sure the lease agreement is complete before sending it for signature.
- Don't try to change terms you've talked about with the tenant.
- Keep the boilerplate for your state, and highlight any adjustments.
The tenant you're sending the commercial lease agreement to should know what to expect, and shouldn't have to scour the contract for small changes they weren't anticipating. Being honest is extremely valuable in commercial agreements.
Tips for a Secure Contract
To have a secure contract, you want to send it properly. Sending electronically and signing online can make a big difference in how your tenants perceive the security of the contract they're signing. When it's time to get your contract signed, you can use Nitro Sign to get any of your contracts or important documents signed! That security is peace of mind for both of you. Also make sure you have a time limit for signing the contract, so you can get it completed and your tenant can move in.
Advice on Using a Commercial Lease Agreement
The biggest thing to note when using a commercial lease agreement is that they're fairly standard in most areas. That's why a commercial lease agreement template is a good idea, since it covers all the little details and legal language you may not be sure about. When you use a template, and only fill in the blanks or make small adjustments, you can feel confident that things are properly covered.
Key Considerations for a Commercial Lease
The biggest considerations for any commercial lease agreement are:
- Proper wording to satisfy legal standing.
- Clarity for both parties.
- Timeliness for creating and renewals.
- Security for landlord and tenant.
- Protection in the event of a legal problem.
A commercial lease can be highly beneficial for you as a business owner, but you want to make sure you're engaging in it the right way.
Related Sources for More Information
Want to know more? Here are some resources to consider, with additional information about commercial lease agreements.