Important Things To Include In Your Commercial Lease

Commercial leases are in many ways different from residential leases. We’re here to help you understand these differences and provide the tools to craft the right agreement.

If you’re planning to lease your property, make sure you have a legal agreement prepared. Our commercial lease solicitors help ensure all the necessary points are made part of the final document.

Here are a few important provisions we confirm in a commercial lease before proceeding it forward:

Permitted use

Commercial properties are leased only for business activities. These permitted uses should be highlighted to ensure it isn’t rented for the wrong purpose.

Your property may be a small storefront or a high-rise with large file rooms. Spell out permitted uses to save hassle down the road.

For instance, if your property doesn’t have a fully-functioning kitchen, it’s not suitable for a restaurant. Such information should be made available in the lease.

Insurance responsibilities

You may decide if the landlord or the tenant or both will be responsible for property insurance. This must be clearly stated in the lease.

It includes both liability and casualty insurance. This information is necessary to ensure both landlord and the tenant are protected.

Exclusive rights

If only a unit is rented from a larger establishment, for instance a storefront or shop in a mall, you may attract more tenants by guaranteeing exclusive rights for their type of business.

For example, malls often have a single grocery store, ensuring a lack of competition. You may also only ensure that the adjacent units will not be rented to similar businesses.

Maintenance responsibilities

This is similar to what happens in apartment buildings. Landlord is responsible for taking care of the property maintenance, and the same is clarified in the commercial lease agreement.

However, if you have a good understanding with your tenant, you may also pass the maintenance responsibilities to the tenant.

Payment and lease renewal options

Financial details must be included in the agreement. Most importantly, payment and lease renewal options and their relevant details must be stated.

Make sure you highlight how often rent will be collected (monthly, quarterly etc.), the grace period for late rent, and whether the lease will renew automatically.

Moreover, special provisions such as property remodelling permissions and forbidding hazardous materials on the property can be made part of the agreement.

If you’re considering crafting a commercial lease, whether new and assignment, we can help you!

Talk to our expert attorneys to ensure all the details are made part of the document. We also offer services for other cases, including bike accident compensation claims, UK residence card applications, and boundary disputes.