When you are searching for a property for commercial purposes, you can opt for either buying a property or leasing one. Generally, people choose to lease real estate as it is cheaper and the more convenient option in the beginning. A commercial real estate lease agreement is drafted when the dealer or the owner or the broker agrees to lease a property for your needs. This agreement establishes the relationship between the landlord and the tenant. Commercial real estate lease agreement templates are used to draft these agreements.
Before you can start to make the contract, you need to consult with the owner of the property. He or she first has to permit you to lease his or her property. Only then can you proceed to the agreement. When you do start to make it, the first thing that you need to do is to choose a software application to use for the same. You can choose from Google Docs, Word, Pages, Publisher, etc. Open the application you have chosen and make a new document in it. Then add a title to the document such as ‘commercial real estate lease agreement’.
The next part of the agreement requires you to determine the parties that are involved in the agreement, Generally, in the case of a lease agreement, there are two participants. One is the owner of the property or the landlord and the other is the tenant who is going to receive the property on lease. When you move on with this step, you need to provide all the details of the two parties. This includes their names, their current addresses, and their contact details.
A very important section in the property is the clause that determines how the property will be used. Since the agreement is for the lease of a commercial property, it should be clearly mentioned that the property is to be used only for commercial use. This implies that the tenant cannot use the property for any other purpose besides commerce. If this clause is excluded, it will imply that the tenant has the liberty to use the property for any purpose as the tenant wants.
The security deposit is the amount of money that the tenant is supposed to provide the owner of the property as collateral. This sum is kept with the owner only to be returned at the end of the lease term. If there are any damages made to the property or any payments have not been made or any clause has been broken, this sum is not returned. Accordingly, you need to mention in the agreement the amount that the tenant will have to pay for the security deposit.
The clauses regarding the maintenance and the improvement of the leased property are provided in the agreement depending on the wishes of the owner. Generally, a property lease agreement does not allow the tenant to make any sort of changes to the property. This implies that the tenant cannot make any improvements. Although this negotiated upon by the two parties and then changed. However, the maintenance clause is mandatory. This clause states what the tenant has to do to take care of the leased property and ensure no damage is done.
