Rental Agreements are important documents that formalize a deal between a landlord and a tenant. With the horrors people encounter pertaining to fraud, litigation, and unpaid rental dues, having a Rental Agreement helps landlords and renters sleep better at night.
A Commercial Rental Agreement is a contract used when a landlord puts up a rental space or property for lease to an individual or a company for business purposes. The contract outlines terms and conditions, including the term of the lease, in exchange for payment given to the landlord.
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Before sealing deals with a landlord or a tenant, it is crucial to determine the parts of an agreement contract – what you expect to see and which ones you should tread carefully to avoid legal issues down the road. Below is a list of common clauses incorporated into a Rental Agreement.
Rental Terms and Conditions
The number one question when negotiating a lease is the amount of rent due each month, and while the amount of rent itself is established, certain clauses in the contract may be negotiable to both the landlord and the tenant, such as rental increases – what are they based on, how much should they realistically be, and tenant improvement deductions – wherein the landlord agrees to decrease rental dues if improvements to the unit were made.
An agreement, as with any other contract, should list down the names of the parties involved in the agreement. For commercial leases, however, the names indicated in the contract will typically be the name of the company renting the space and not a person’s name. This is to protect individuals from liability.
Start of Lease
Another important detail that should be found in a Rental Agreement is the duration of the lease and the date that it should take effect. Typically, the date when rent is due depends on the start date of the lease, which should be indicated in the contract. However, many businesses presume that due dates begin when the business is actually up and running.It is best to clarify this issue with your landlord to avoid misunderstandings.
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Maintenance and Repair
Maintenance and Repair clauses also have to be properly outlined in Rental Agreements. Maintenance and repairs are typically covered by the landlord; however, repairs incurred by the tenant, whether intentionally or unintentionally, may be shouldered by the tenant. Security deposits can also be used to cover for damages incurred to the property.
Improvement and Alterations
Generally, issues pertaining to the beautification or improvement of a leased space will vary according to negotiations between a landlord and a tenant. Make sure to provide clear and proper terms pertaining to who should shoulder the costs for any changes made to the unit, and if any improvements made by the tenant should merit a decrease in monthly rental dues.
Other clauses pertaining to a Commercial Rental Agreement may also include the following terms and conditions:
- Security Arrangements
- Renewal Options
- Parking and Access
A Commercial Rental Agreement should be carefully constructed to make sure it covers all important clauses and avoids disputes or misunderstandings down the road. Use our Agreement Forms to get the best templates for your Commercial Lease Agreement Forms and Commercial Agreement Forms.
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