As a commercial landlord, your biggest focus may be getting solid tenants into vacant space. Idle property can be expensive.
However, when it comes time to rent commercial property, many landlords don’t spend enough time making sure their form lease is favorable to their interests. Here are a few commercial lease musts:
Property maintenance and repair responsibilities
Some landlords or their property managers are willing to oversee all repair requests. Sometimes it makes more sense to have tenants handle their own repair needs.
Whatever your situation is, it’s important to have it clearly defined in the signed lease. Make sure the lease addresses who is responsible for what upkeep costs related to the property. Address all the particulars that are relevant to your specific building and space.
Specify the permitted uses narrowly to prevent your tenant from an unexpected use. In retail spaces, anchor tenants sometimes require protective provisions keeping all other tenants out of their business sectors.
Rental rate determinations
It’s important to specify how rent and common area costs increases occur. If you are negotiating a multi-year lease, highlight any percentage increases of rent.
Creating a mutually beneficial arrangement
Ideally, your commercial property benefits both you and the tenant. By creating solid, thorough lease agreements that plainly spell out what’s expected of a tenant, you can do just that.
Nobody wants to be surprised by extra costs or unforeseen rent increases. Keeping things transparent through your lease agreement can help both parties. A skilled real estate attorney can help property owners craft a form of lease that addresses their specific needs.