However, if you have a well-established business, a long-term lease may be an affordable option. Also, the lessor will likely make more concessions if you opt for a long-term lease. These are all very important issues that you should carefully consider. Make sure that the specific answers to these questions are clearly formulated, so that there is no room for confusion. Improvement issues are one of the leading causes of commercial real estate disputes and often lead to legal action. As a result, your section on improvements and renovations can be several paragraphs or even several pages. Note, however, that if all the terms of the lease are negotiable, your bargaining power depends on the state of the local rental market. With plenty of commercial space, you can easily win multiple concessions. But if you`re looking for space in a narrow market, you have little influence and can only negotiate so many things. If you sign a long-term lease for an area that requires many improvements, apply for a rent improvement indemnity. And even with a short-term lease, you could use the surface condition to negotiate fair business. For example, your lease may state that “this tenancy agreement between (your name), which is known below as the `lessor` (your business name) and (tenant`s name) who do business as (tenant`s business name), is hereinafter referred to as `tenant`. Indicate the amount of the monthly, annual or semi-annual rent.
Unlike residential leases, commercial leases are often for a much longer term, typically several years. As a result, you can increase the rent before the end of the rental period. Let the tenant know how and when you are going to do it. For example, you can indicate that the rent is increasing by a certain percentage per year. Another possibility would be to list certain data on which the increase takes effect at the same time as the dollar amounts. If this is not in the rental agreement, ask the landlord for the right to sublet and assign it if you sell, close your business for other reasons, or move into a larger space. Subletting and assignments mean that the third party takes over the lease and does everything you`ve done, and you don`t have to break the lease. Lease to Own Agreement – Contains an additional section that is not common in standard lease agreements and allows landlords to list a purchase price for rent….