Commercial lease Agreement Definition
A commercial lease agreement is a contract between two parties about properties that are rented for business purposes. Looking at its term, “commercial”, of course, this is different from the resident rental. The building or space rented will be used for business activity instead of housing. Then, who are eligible to rent such a place? It can be anyone. This can be a small business or growing or big companies. Therefore, if you are putting your rent for a business, we provide you with tons of commercial lease agreement templates that you can download for free.
Commercial Lease VS Residential Lease
Even though the concept of renting space sounds similar to the residential type, there are several differences you should be aware of. First, the residential list agreement cannot be changed by the laws even though both parties already agree to terminate certain terms. On the other hand, the commercial lease agreement is beyond the basic contract which has no restriction. This agreement is easy to be customized. However, every tenant and landlord should be careful when it comes to a commercial lease especially with the negotiation.
How Does Commercial Lease Agreement Bind In Front Of Law
The main difference you will see is on the dispute resolution. When it comes to the residential lease agreement, they can fix it through local housing laws. Besides, consumer protection is always powerful to protect the rights of the tenants. Meanwhile, the commercial lease only provides rights that are stated clearly on the contract.
What Are Types Of Commercial Lease Contract You Can Find?
We have tons of type commercial lease agreement template word and PDF. There are some types of the lease that you can download on this page, which are:
- Net lease agreement – This types of the agreement require the tenants to pay the taxes, insurance, maintenance and other payments that are incurred by the landlords in the agreement.
- Double net lease – This agreement requires the tenants to pay the insurance, rent, and taxes. There is no need to do maintenance in this case.
- Triple net lease- The tenant is required to pay maintenance, rent, taxes, and insurance only.
- Percentage lease – This agreement is ruling about the payment that is based on the specified percentage.
- Fully-serviced lease – The tenants are required to pay utilities and other facilities separately. This type of agreement usually appears in the building with multiple tenants.
What Are Specific Items We Should Pay Attention More When Creating This Agreement?
There are several important terms that you have to underline when agreeing, such as:
- Lease terms – The terms should state the duration of the else, when the first date begins and when the end date last. Can also the tenants extend the lease?
- Rent Payment – State the cost of the rent
- Other costs – State who pay the insurance, taxes, maintenance, etc.
- Security deposit – State the deposit so you will not miss any chance.
That’s all quick tips about how to make a commercial agreement effectively. Don’ forget to download its template for free here!
Commercial Lease Agreement Template Sample