An Overview of the Details Involved with a Commercial Lease

Commercial lease agreements are drawn up to bind both the landlord and the tenant in an enforceable contract. The details within the lease agreement should be within the laws set forth by the state the contract is to be used in. An attorney should be consulted to review any agreement before it is signed. They will be able to determine if there are any unreasonable demands and can suggest options to replace them. Once both parties are in agreement, the agreement can be signed and placed in affect.

The names of all who are to be bound by the agreement should be printed within the body of the document. There should be lines for each person’s signature. Under their respective line, their name and title should be printed clearly.

The address of the property or properties involved should be clearly stated. If only a partial amount of the property is to be leased, the boundaries should be understood by both parties and included within the document. Who is responsible for the maintenance of the property and any repairs that need to be performed during the duration of the lease needs to be stated. 

A commercial lease agreement should clearly state the day and date the lease takes effect and when the property will be available for occupation. The length of the lease period should also be clearly stated. If there is an exact termination date of the lease, it should also be included.

Lease agreements should include what amount is expected per month for the rental of the property. There should also be an itemized list as to what party is responsible for what costs, such as utilities, insurance and various forms of upkeep. Details as to who is to receive the rent should also be in the agreement. A current address with the name of the person responsible for posting the rental fees should be provided in the agreement and provisions for having it updated, as well. If money is to be direct deposited into a bank account or holding fund, complete and accurate information should be provided to the persons leasing the property.

Stipulations as to a grace period need to be included as well. This will set in place a period of time after the due date that a rent payment can be late without incurring a late charge. If the owner of the property chooses to attach a late fee to any payment rendered after the grace period, the amount should be clearly stated within the lease agreement.

A commercial lease agreement is a promise between parties to come to terms over the use of a specific property. Each agreement will be as unique as the individuals and companies involved. Universal forms can be found online or drawn up by a third party. In either event, they should be given to a lawyer to ensure they will remain legal and binding.