Carl Glendon

Writing A Commercial Lease Agreement – What Are The Key Points To Include?

A commercial lease agreement is a contract signed between a property owner and a tenant for securing and protecting the rights of both parties. It states the leased property can be used by a tenant in exchange for a sum of rent. It is important to ensure proper Personal Guarantee in a Commercial Lease. Thus, a perfect commercial lease agreement needs to have these important points:

Length of space

It is very essential to note how much space each tenant has been given. In numerous cases, a huge difference was noticed between the given space and the actual length of space.

Number of tenants

It is also important that you write about the total number of tenants who are supposed to reside in the rented property. In many cases, it has been found that tenants - while trying to rent a property, calls out many people in the rented apartments and say that they can call as many individuals to live with them as they want - arguing that they have made a full payment. Thus, the lease agreement must clearly state the actual no. of tenants who would be living. Unlike a business lease agreement template, it must be noted that any rise in number of tenants will not be allowed until the proprietor wishes so.

Net or Gross Lease

It also has to be noted whether the property leased out is on a net lease or a gross lease. There are various cases where court cases go on due to such small complexities. Thus, it has to be clarified in the contract whether the tenant needs to only pay the home rentals, referred to as a gross lease, or whether a share of the property tax and other taxes need to be paid by the tenant with the rental. It is known as a triple net release. All such points should be encapsulated by a commercial lease agreement. Please visit this site to get a sample commercial lease agreement in Alabama.

There are various other activities that can appear small in the beginning, but may cause problems and thus have to be included in the free Commercial Lease Agreement. These points can be about whether or not loud music, drugs, pets etc would be tolerated.

Author Resource:-

Carl writes often about legal drafting, rental & commercial lease agreements, power of attorney, Bill of Sale and help the people in such document needs. You can find his thoughts at commercial tenancy agreement blog. To learn more about drafting a commercial lease agreement in Montana online, visit this website.