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3 details you may have forgotten in your commercial lease agreement

| Aug 24, 2020 | Commercial Real Estate, Real Estate Disputes, Real Estate Transactions |

When creating a commercial lease agreement, you have many details to negotiate. How much rent will the tenant pay? When will the rent be paid? When will the lease expire? Can the tenant renew the lease? With so many details, it can be easy for other information to get lost in the shuffle. What details might you have forgotten in a commercial lease agreement?

Can the tenant sublease the property?

Whether a business needs to move to a new location or goes out of business with time left on their lease, subleasing can be an appealing opportunity. This is especially true in up-and-coming areas or thriving shopping areas.

A commercial lease agreement should include information about subleasing if the landlord will allow it, any subleasing fees that the tenant should pay, background check requirements and other details. If a landlord does not allow subleasing, their commercial lease agreement should state that. These terms give tenants a clear path to subleasing and protects landlords if tenants sublease without permission.

Who is responsible for maintenance?

As Forbes notes, repairs can be costly, and these unexpected expenses can have a significant impact on a business. Because of these challenges, any commercial lease agreement should include information about who is responsible for maintenance of the leased property, how much of the costs the renter will cover if the expenses are shared and other details.

What happens if conflict arises?

What happens if the tenant defaults on their lease? What happens if the owner does not uphold their responsibilities? Knowing how you will handle conflict—whether that is a process for remedying a breach of lease or terms about settling other disputes through arbitration—can help resolve these conflicts sooner.

If you want to ensure that your lease agreement achieves your goals, speak to an experienced real estate attorney. They can help you review your agreement and negotiate more favorable terms for your business.

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