Commercial Lease Template

Published: 03rd April 2012
Views: N/A

Commercial lease agreement is made between landlord and tenant to use the property for commercial purposes. Commercial lease agreement is also known as business property lease agreement. The terms and conditions of a commercial lease agreement are negotiable and vary from lease to lease. .The commercial lease template is of two types: short term leasing and long term. Commercial Leases are of different nature and can range from short periods of up to five years or longer periods of 25 years and upwards.. Before going to sign a commercial lease agreement, a lessee has to specify his requirement, whether it will be a short term lease or a long term? A Tenant might need a long lease in order to justify high fixed costs or machinery installation, or he may prefer a short lease so that his obligation to pay rent does not hang over him for longer than minimally necessary.
A written commercial lease agreement has its own conditions and regulations that the landlord and tenant have to abide.. The key laws regarding commercial leases in Ireland are the Landlord and Tenant Acts 1860 and 1980. The commercial property lease that is based on five years does not provide the automatic renewal of the lease at the expiry of the term of the lease period. Short term lease also provides the protection to the landlord that he will gain the possession of the property after the expiry of the short term lease.
There is no standard form of commercial lease agreement it is easily made under the negotiations between landlord and tenant. But once it is made and singed, it becomes a legal binding.
A commercial lease agreement includes:
• Identification of the property address
• Term of tenancy: whether it is a fix term tenancy or renewal annually
• Determination of rent amount(according to the rental area calculation, for example the sum of each square feet of the area)
• Complete details of rent deposits
• Interval of payments (most commonly monthly)
• Dates of contract starts and terminates
Increase in rent also includes insurance, property taxes, common maintenance supplies and other utilities. However it is applicable for long term leasing.
Points to remember:
• Rent Amount: Being a tenant be aware of what footage the landlord uses to calculate the rent. Also negotiate which party is responsible for other costs like utilities, insurance, property taxes and maintenance.
• Rent Increases Conditions: an annual percentage-based rent increase is applied on commercial lease agreement. Negotiate with landlord about your reservations on rent increase in order to avoid unmanageable rent costs later.
• Security Deposit: verify the amount of security deposit and terms of return.
• Length of Lease: whether it will be short term of long term leasing?
• Modifications and Improvements: a commercial lease agreement should address what improvements and modifications can be made to the leased property, which party will pay the costs and the tenant has to responsible to return the property in its original condition at the end of the tenancy?
• Depiction of the Property: the lease should clarify the areas and property under lease for example: bathrooms, kitchen are, parking lodge and common areas
• Use Clause: this includes provisions to protect the property from damage and to limit the liability of property owner.
On the other hand, a residential property lease is quite different. It is used by a tenant to rent a home or space for residential purposes. A residential property lease also includes more government protection as the tenants are not knowledgeable people and they have limitations over.
There is no fixed term agreement for lease; a landlord may terminate a tenancy in first 6 months without any reason but by giving a minimum of 28 days’ notice to quit in written. As similar to this, the act gives greater security to tenants also that they continuous dwelling for more than 6 months without giving any valid notice to quit and can remain in the property for further three and a half years.

Paul Johns is working for Net Lawman Ltd. - providing best quality online legal documents, legal agreements, legal advice and free legal information. See relevant resource: Residential Property Lease , Unsecured loan agreement .


.


Report this article Ask About This Article


Loading...
More to Explore